Defending India’s ethanol blending programme: Facts over fiction

India’s ethanol blending programme (EBP) has emerged as a cornerstone of the nation’s energy strategy, yet it continues to face sustained criticism fueled by misconceptions and incomplete information. As misinformation spreads rapidly through digital channels, it becomes essential to examine the program through an evidence-based lens, separating legitimate concerns from unfounded fears that threaten to derail a crucial national initiative.

*The Reality Behind Fuel Performance Claims*

The most persistent criticism centres on alleged severe mileage reduction and engine damage from E20 fuel. However, comprehensive testing by multiple authoritative bodies paints a dramatically different picture. The Ministry of Petroleum and Natural Gas has shown that E20-compatible vehicles experience little to no mileage reduction, whereas older vehicles may see some decreases. This minimal impact pales in comparison to the substantial environmental and economic benefits the program delivers.

Engine damage claims lack a scientific foundation entirely. The Automotive Research Association of India (ARAI) and Indian Oil Corporation’s research division have conducted extensive studies confirming E20’s safety within established parameters. Ethanol’s superior octane rating actually enhances engine performance and provides smoother operation in modern vehicles. The narrative of widespread engine destruction appears to stem from isolated incidents or pre-existing mechanical issues rather than systematic fuel-related problems.

The industry has responded proactively to vehicles requiring compatibility updates. Maruti Suzuki’s planned upgrade kits, costing approximately ₹4,000-₹6,000, will retrofit cars up to 15 years old for E20 compatibility. This modest investment demonstrates the industry’s commitment to supporting consumers through the transition while maintaining the programme’s momentum.

Addressing food security misconceptions

The “food versus fuel” debate represents perhaps the most emotionally charged criticism of the EBP, yet it fundamentally mischaracterises India’s feedstock strategy. Rather than diverting essential food crops, the program strategically utilises agricultural surplus, damaged grains unsuitable for human consumption, and crop residues that would otherwise contribute to environmental problems like stubble burning.

The Food Corporation of India’s decision to make surplus rice stocks available for ethanol production exemplifies this approach, creating value from materials that would traditionally be considered waste. This strategy transforms potential losses into economic opportunities while maintaining strict safeguards around food security.

The programme actively promotes agricultural diversification, encouraging farmers to shift from water-intensive crops like sugarcane to alternatives such as maize. This transition offers multiple benefits: reduced water consumption, lower environmental impact, and the production of Dried Distillers Grains with Solubles (DDGS), a valuable high-protein animal feed that creates additional revenue streams for farmers.

Rigorous coordination between the Ministry of Petroleum and Natural Gas and other government departments ensures that crop diversion for ethanol production never compromises national food security. This careful calibration process represents responsible policy implementation rather than reckless resource allocation.

Strategic Necessity, Not Luxury

Dismissing the EBP as an unnecessary luxury reveals a fundamental misunderstanding of India’s strategic imperatives. Energy security remains one of the nation’s most pressing challenges, with crude oil imports creating significant economic vulnerabilities. The program has already generated substantial foreign exchange savings, insulating India’s economy from volatile global oil markets while reducing dependence on potentially unstable supplier nations.

The economic impact extends far beyond energy security. In 2025 alone, public sector Oil Marketing Companies are projected to pay farmers nearly ₹40,000 crore, directly injecting capital into rural economies and supporting millions of agricultural families. This represents genuine economic empowerment, creating sustainable income sources independent of traditional market fluctuations.

Environmental considerations further underscore the program’s strategic importance. Ethanol burns significantly cleaner than conventional petrol, reducing harmful emissions including carbon monoxide and other pollutants that contribute to India’s air quality challenges. Abandoning the program would sacrifice hard-won environmental gains precisely when climate action becomes increasingly urgent.

Moving forward with confidence

The criticism surrounding India’s Ethanol Blending Programme often reflects outdated information, isolated incidents, or fundamental misunderstandings about the programme’s design and implementation. Government agencies, research institutions, and industry partners have collaboratively developed comprehensive frameworks addressing technical challenges, protecting food security, and advancing national strategic interests.

Rather than representing policy overreach or economic waste, the EBP embodies precisely the kind of forward-thinking initiative India requires to navigate 21st-century challenges. By reducing import dependence, supporting rural economies, and advancing environmental goals simultaneously, the program demonstrates how well-designed policy can deliver multiple benefits while addressing legitimate concerns through continuous improvement and stakeholder engagement.

India’s ethanol blending initiative stands not as a luxury experiment but as an essential investment in the nation’s sustainable, self-reliant future. The facts support continued commitment to this transformative program, despite the noise of misinformation that surrounds it.

The author is Managing Director of Samarth SSK Ltd and Co-Chairperson of the Sugar Bioenergy Forum (SBF) under the Indian Federation of Green Energy.

Published on August 31, 2025

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