Editorial: Fuel versus food debate

While ethanol-blended petrol is important, a cautious approach is needed so that there is no pressure on food crops

India’s vision of blending 20% ethanol in its fuel mix by 2025 is a laudable objective but faces multiple challenges from environmental and food production angles. The drive has resulted in an unexpected shift in the country’s agricultural landscape. Once Asia’s top corn exporter, India has now become a net importer for the first time in decades due to the promotion of corn-based ethanol production. The diversion of food crops like corn and sugarcane for ethanol production has already reignited the food versus fuel debate. With ethanol distilleries now competing for corn supplies, there is a projected shortfall of 5 million tonnes for traditional users. This competition is driving up food prices and potentially threatening food security. Corn prices have risen far above global benchmarks, prompting calls for duty-free corn imports and even a reconsideration of the ban on genetically modified corn. As India appears set to become a permanent net importer of corn, this shift is not only reshaping domestic agricultural priorities but also scrambling global supply chains, with traditional export markets now turning to South America and the United States for their corn needs. Ethanol production, particularly from water-intensive crops like sugarcane and corn is exacerbating India’s water crisis. The push for increased ethanol production could further strain water resources in already water-stressed regions. While there is no doubt that usage of ethanol-blended petrol would reduce carbon dioxide pollution and also help in reducing the country’s oil import bill, there is a need for a cautious and balanced approach so that there is no pressure on food crops.

Ethanol can be blended into petrol to reduce the quantity of petrol required to run a vehicle, thus reducing dependency on imported, costly and polluting petroleum. An increased use of ethanol is likely to reduce India’s crude oil dependence and save more than $4 billion annually. This shift not only improves energy security but also provides a buffer against volatile global oil prices, enhancing India’s economic stability. Reducing both emissions and the reliance on fossil fuels are the two key drivers behind India’s fuel ethanol policy. The key feedstocks for producing ethanol in the country are corn, sugarcane, rice and maize. However, there is also a flip side to it. More ethanol production would mean that more land has to be brought under cultivation of raw material, and that may adversely affect food security. The moot question is whether India should divert crops for fuel production or use them to first meet food and feed demands. The position may not be as binary in the case of sugarcane, where sugar is generated as a by-product, but diverting corn, maize and rice for ethanol production directly competes with their food and feed requirements. There is a need to adopt a holistic and coordinated approach to development that recognises the interconnectedness of various objectives.

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