Home  /  Daily Current Affairs  /  13-05-2025 / Centre Approves Additional FCI Rice for Ethanol Production

Centre Approves Additional FCI Rice for Ethanol Production

Last updated on May 13th, 2025 Posted on May 13, 2025 by NEXT IAS Current Affairs Team  491

Syllabus: GS3/ Environment

In Context

  • The Union Government approved an additional 2.8 million tonnes of rice from the Food Corporation of India (FCI) stock for ethanol production, raising the total allocation for the Ethanol Supply Year (ESY) 2024–25 to 5.2 million tonnes.

About

  • The decision, under the Ethanol Blended Petrol (EBP) Programme, aims to accelerate biofuel use, but has reignited concerns over the diversion of food grains from food security to fuel needs.

What is Ethanol and the EBP Programme?

  • Ethanol is an alcohol-based biofuel made through the fermentation of sugar, starch, or cellulose derived from crops like sugarcane, maize, and rice. When blended with petrol, it helps reduce vehicular emissions and dependence on fossil fuels.
  • The Ethanol Blended Petrol (EBP) Programme was launched in 2003 and accelerated since 2014. It mandates the blending of ethanol with petrol. 
  • India has achieved its E20 target — 20% ethanol blending in petrol by 2025 — and now aims to reach 30% blending by 2030.

Significance of the Move

  • Energy Security: Helps reduce India’s import dependence on crude oil and promotes energy self-reliance.
  • Climate Benefits: Ethanol is a cleaner fuel that emits fewer greenhouse gases compared to pure petrol.
  • Rural Economy Boost: Creates demand for surplus agricultural produce, potentially benefiting farmers through better prices.
  • Policy Push for Green Energy: Aligns with India’s commitment under the Paris Agreement and targets for renewable energy use.

Concerns Regarding the Move

  • Food Security Risk: Diverting 5.2 million tonnes of rice from central buffer stocks could strain the Public Distribution System (PDS), especially during drought years or inflationary periods.
  • Price Distortion: Cheap supply of FCI rice (₹22.50/kg) to distilleries may affect open market prices and hurt the poor.
  • Ecological Unsustainability: Rice is a water-intensive crop, and its use for ethanol raises concerns in water-stressed regions.
  • Inefficient Use of Resources: Critics argue that ethanol from food grains is not the most efficient or ethical route, especially when alternatives like second-generation (2G) ethanol from waste biomass exist.
  • Distortion of Agricultural Priorities: Over-reliance on a few ethanol feedstocks (rice, sugarcane, maize) may affect crop diversification and soil health.

Way Forward

  • Focus should shift towards 2G ethanol (from agricultural waste and non-food biomass).
  • Establish clear guidelines balancing food security with biofuel goals.
  • Improve ethanol production efficiency from non-edible sources.
  • Ensure transparent audits on the use of diverted grains and their impact on PDS stocks.

Source: DTE

 
Previous article Geotubing: A Breakthrough in Coastal Erosion Control
Next article News In Short-13-05-2025

Other News of the Day

Syllabus: GS3/Economy/Trade Context The U.S. and China agreed to suspend most tariffs on each other’s goods. Background Why were Tariffs Levied? Trade Imbalance: The U.S. Trade Representative pointed to a $1.2 trillion trade deficit with the rest of the world as justification for tariffs. The Trump administration viewed this as the U.S. being “ripped off”...
Read More

Syllabus: GS3/Defence Context Pakistan is indulging in psychological warfare with the spread of misinformation across social media platforms aimed at misrepresenting India’s military actions and preparedness. And, the PIB fact-check unit reviewed widely circulated fake videos and claims, allegedly originating from Pakistani social media handles. Psychological Warfare Psychological warfare involves the planned use of propaganda...
Read More

Syllabus: GS3/ Economy; Environment Context India, now among the top global generators of electronic waste (e-waste), faces a critical challenge in managing the growing volume of obsolete electronic devices. E-Waste in India E-waste refers to the discarded electronic and electrical devices that have reached the end of their lifespan or become obsolete due to rapid...
Read More

Syllabus: GS3/Environment; Climate Change Context A recent study has found that geotubing technology deployed at Poonthura, Kerala, has been highly effective in controlling coastal erosion. Geo-Tubing Technology for Coastal Erosion Geotubes are large fabric containers filled with sand or slurry, placed strategically along the coast. They act as wave barriers, diminishing the force of incoming...
Read More

Yala Glacier Syllabus: GS1/ Geography, GS3/ Environment Context Glaciologists and local communities mourned the loss of Nepal’s Yala glacier, believed to be the first Nepalese glacier to be declared “dead”. About Location: It is situated in Langtang National Park, in Nepal’s Himalayan region. Altitude: It lies at an elevation of about 5,000 meters above sea...
Read More