The Government has clarified that the Ethanol Blended Petrol Programme does not compromise India’s food security and is aimed at strengthening the country’s energy security, reducing dependence on imported crude oil and providing better returns to farmers.
Responding to recent claims regarding the use of Food Corporation of India’s rice for ethanol production, the Ministry of Petroleum and Natural Gas said that food security obligations are always given top priority. It stated that every grain procured under the Minimum Support Price system is first allocated for the Public Distribution System, the National Food Security Act, welfare schemes and mandatory buffer stocks. Only surplus stocks, certified by the Department of Food and Public Distribution after meeting all food security requirements, are approved for ethanol production.
The Ministry also clarified that damaged grain, broken rice and foodgrain unfit for human consumption are among the feedstocks used for ethanol production, helping convert otherwise unusable stocks into clean energy. It added that the country is also expanding the production of second-generation ethanol from agricultural residue under the Pradhan Mantri JI-VAN Yojana, thereby reducing dependence on food grains.
On the pricing of FCI rice, the Government said that it is one of several approved feedstocks and is governed by the same pricing framework as other raw materials used for ethanol production. It noted that the programme is designed to use a flexible mix of approved feedstocks based on availability and that FCI rice accounted for only a negligible share of ethanol production in Ethanol Supply Year 2023-24. Its share increased later only after surplus stocks became available.
The Government also rejected the claim that ethanol blending survives only through taxpayer support. It said the objective of the programme is not to ensure ethanol is cheaper than petrol on any given day, but to protect consumers from fluctuations in global crude oil prices. According to the Ministry, during the period when international crude oil prices touched around 135 US dollars per barrel, ethanol blending helped shield domestic fuel prices from a sharper increase.
The Government highlighted that the Ethanol Blended Petrol Programme has so far resulted in foreign exchange savings of more than Rs 1.97 lakh crore, reduced crude oil imports by over 316 lakh metric tonnes, cut carbon dioxide emissions by more than 950 lakh metric tonnes and generated payments of over one lakh 66 thousand crore rupees to farmers and distillers.
