India is the 3rd largest biofuel producer globally, with the government targeting 20% ethanol blending (E20) by 2025. The biofuel strategy aligns with India’s energy security, farmer welfare, and climate commitments under the Paris Agreement.
Significance of India’s Biofuel Push:
- Energy Security: As India imports 88% of its crude oil needs, achieving E20 blending could save USD 4 billion annually (NITI Aayog).
- Foreign Exchange Savings: Ethanol blending has already saved ₹85,000 crore in forex as per NITI Aayog.
- Carbon Emission Reduction: E20 reduces emissions by 50% in two-wheelers and 30% in four-wheelers which is equivalent to planting 175 million trees.
- Farmer Income: Maize prices rose 70% in four years due to ethanol demand enhancing the income of farmers.
- Rural Growth: The biofuel sector could generate 18 million rural jobs as per the ADB Report.
- Climate Commitments: Bio fuel push could support India’s Net Zero 2070 pledge and Paris Agreement NDCs.
Challenges:
- Food Security Concerns:
- Nearly 1 million tonnes of FCI rice diverted for ethanol riasing concerns on food security.
- It may reduce availability of pulses, millets which risks food inflation.
- Water & Soil Stress:
- Sugarcane requires 2,000 litres of water for 1 kg sugar leading to water insecurity issues.
- Monoculture crops may further degrade soil health and biodiversity which hampers soil productivity.
- Land Misallocation:
- Expansion of ethanol-centric crops reduces land for food crops and industrial needs.
- Supply Chain Bottlenecks:
- Lack of aggregation systems for crop residues hampers bio-fuel supply chain network.
- High costs of baling machines discourage stubble collection which is crucial for assured supply of raw material.
- Climate Vulnerability:
- Monoculture of bio-fuel compatible crops may prompt higher susceptibility to pests, diseases, and climate shocks.
Government Initiatives:
- National Biofuel Policy: Promotes 1G, 2G, 3G biofuels.
- Ethanol Blending Programme (EBP): Target of E20 by 2025–26.
- Pradhan Mantri JI-VAN Yojana: Funds 2G ethanol plants using crop residues, and bamboo.
- GOBAR-DHAN Scheme: Converts cattle dung and organic waste into biogas/biocNG.
Way Forward:
- Shift to Advanced Biofuels (2G, 3G, 4G):
- Use crop residues, bamboo, algae, and waste cooking oil instead of food crops.
- Support R&D in algae-based and synthetic biofuels.
- Utilize Degraded Land:
- Over 55 million hectares of wasteland (NRSC 2019) can be used for biofuel crops which avoids food-fuel conflict.
- Water-Efficient Practices:
- Expand micro-irrigation as only 10 mha out of 140 mha net sown area currently covered under it pointing out massive potential.
- Incentivize drought-resistant crops for ethanol.
- Rationalize Subsidies & Policies:
- Align procurement policies to discourage excessive maize/sugarcane use.
- Incentivize 2G plants under JI-VAN Yojana.
- Integrate Rural Energy Economy:
- Link ethanol with biogas, biomass pellets, solar mini-grids to create diversified rural energy hubs.
- Diversify Energy Mix:
- Complement biofuels with EV adoption aligning with 30% target by 2030 and green hydrogen economy.
Conclusion:
The path forward lies in advanced biofuels, rational land use, water-efficient practices, and diversified clean energy mix. With these reforms, India can balance the food-energy-water-environment (FEWE) nexus, contributing to SDG 2 (Zero Hunger), SDG 7 (Clean Energy), and SDG 13 (Climate Action).
‘+1’ Value Addition:
- Brazil’s Ethanol Model: Started Ethanol programme since 1970s as a result now 80% of cars are flex-fuel. India is collaborating with Brazil for technology transfer.
- Stubble Burning Solution (Punjab & Haryana): Using crop residue for 2G ethanol plants reduces air pollution (Delhi smog) and provides extra income to farmers.
- Indian Railways (2023): Began trials of bio-CNG powered engines, showcasing biofuels beyond just road transport.
- Assam Bamboo Bio-refinery (2025): Inaugurated by PM, it produces fuel-grade ethanol from bamboo diversifying away from sugarcane & maize.
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