{"id":19850,"date":"2023-12-20T18:46:17","date_gmt":"2023-12-20T13:16:17","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=19850"},"modified":"2023-12-27T10:50:59","modified_gmt":"2023-12-27T05:20:59","slug":"indias-ethanol-conundrum","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/20-12-2023\/indias-ethanol-conundrum","title":{"rendered":"India\u2019s Ethanol Conundrum"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Environmental Pollution &amp; Degradation<\/strong><\/p>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">In context<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The future of India\u2019s renewables strategy hangs on a delicate food-fuel trade-off.<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Ethanol Blending<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ethanol can be mixed with <strong>gasoline <\/strong>to form different blends.\n<ul class=\"wp-block-list\">\n<li>Once blended, the ethanol <strong>cannot be separated<\/strong> from the petrol.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>As the ethanol molecule contains oxygen, it <strong>allows the engine to more completely combust the fuel<\/strong>, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.&nbsp;<\/li>\n\n\n\n<li>Since ethanol is produced from plants that harness the power of the sun, <strong>ethanol is also considered a renewable fuel<\/strong>.\n<ul class=\"wp-block-list\">\n<li>It has a <strong>higher octane number <\/strong>than gasoline, hence improving the petrol octane number.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">India\u2019s National Biofuel Policy<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Aim:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The policy is aimed at reducing dependence on imports by encouraging fuel blending.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Key elements: <\/strong>With<strong> bioethanol, biodiesel <\/strong>and <strong>bio-CNG<\/strong> in focus, its key parts include\n<ul class=\"wp-block-list\">\n<li><strong>Ethanol Blending Programme (EBP)<\/strong>,&nbsp;<\/li>\n\n\n\n<li>Production of<strong> second-generation ethanol <\/strong>(derived from forest and agricultural residues),&nbsp;<\/li>\n\n\n\n<li>Increasing capacity for production of<strong> fuel additives<\/strong>, <strong>R&amp;D in feedstock<\/strong>, which is the starting material for ethanol production.<\/li>\n\n\n\n<li><strong>Financial incentives<\/strong> for achieving these goals.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ethanol Blending Petrol (EBP) programme:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The Centre promotes the Ethanol Blending Petrol (EBP) programme with the aim of\n<ul class=\"wp-block-list\">\n<li>Enhancing energy security,&nbsp;<\/li>\n\n\n\n<li>Reducing import dependency on fuel,&nbsp;<\/li>\n\n\n\n<li>Saving foreign exchange,&nbsp;<\/li>\n\n\n\n<li>Addressing environmental issues and&nbsp;<\/li>\n\n\n\n<li>Giving a boost to agriculture.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Accomplishments:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The \u2018National Policy on Biofuels\u2019 notified by the government in 2018 envisaged an<strong> indicative target of 20% ethanol blending in petrol<\/strong> by 2030.\n<ul class=\"wp-block-list\">\n<li>In 2014 only 1.5 per cent ethanol was blended in petrol in India.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Given the <strong>encouraging performance <\/strong>and<strong> various interventions <\/strong>made by the government since 2014, <strong>the 20% target was advanced to 2025-26.<\/strong><\/li>\n\n\n\n<li>The ethanol-blended petrol (EBP) programme has been<strong> a significant accomplishment <\/strong>of the current government.\n<ul class=\"wp-block-list\">\n<li>The all-India average blending of ethanol with petrol has risen from 1.6% in 2013-14 to 11.8% in 2022-23.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Current scenario of Ethanol Blending in India&nbsp;<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>About:<\/strong>\n<ul class=\"wp-block-list\">\n<li>As more than 100 countries at COP28 in Dubai pledged the tripling of global renewable energy capacity by 2030, India faces a tightrope walk with regard to its ethanol blending target.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Ethanol production from sugarcane:<\/strong>\n<ul class=\"wp-block-list\">\n<li>While<strong> ethanol blended petrol (EBP) <\/strong>increased <strong>from 1.6% in 2013-14<\/strong> to <strong>11.8% in 2022-23<\/strong>, the 20% target by 2025 has run into trouble\n<ul class=\"wp-block-list\">\n<li>The major reasons being <strong>low sugar stocks in 2022-23<\/strong> and the <strong>impending shortfall in sugarcane production<\/strong> this year.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Transition to grains-based ethanol:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The government is<strong> looking at a major transition<\/strong> towards grains-based ethanol for meeting the target.&nbsp;<\/li>\n\n\n\n<li>The recent authorisation of the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers\u2019 Federation of India (NCCF) to <strong>procure maize (corn)<\/strong> for supplying ethanol distilleries indicates emphasis on this transition and will<strong> boost an organised maize-feed supply chain<\/strong> for ethanol.&nbsp;<\/li>\n\n\n\n<li>This, however, risks creating more challenges for the economy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Issues &amp; challenges<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Connection with crude prices:<\/strong>\n<ul class=\"wp-block-list\">\n<li>The two major feedstock for ethanol production are sugarcane (Brazil) and corn (the U.S.).\n<ul class=\"wp-block-list\">\n<li>Ethanol production in both these countries <strong>boomed from 2000<\/strong> when <strong>crude oil prices started rising<\/strong> and<strong> remained above a certain threshold<\/strong> for a decade.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>At low crude prices, ethanol blending is <strong>not competitive<\/strong>; it is a slow process driven by heavy subsidies.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Food-fuel conflict:<\/strong>\n<ul class=\"wp-block-list\">\n<li>A crucial difference between the use of sugarcane and corn for producing ethanol is the <strong>degree of food-fuel conflict that emerges<\/strong>.&nbsp;<\/li>\n\n\n\n<li>In the case of sugarcane, ethanol is produced by<strong> processing the molasses (C-heavy\/B-heavy)<\/strong> and constitutes<strong> minimal trade-off with the sugar output<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The B-heavy molasses path produces less sugar compared to the C-heavy one, but both produce sugar and ethanol simultaneously from sugarcane.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>But using corn for producing ethanol directly reduces its use as food or livestock feed.&nbsp;<\/li>\n\n\n\n<li>It not only diverts grain to fuel use, but also links food prices directly with crude oil prices through the demand side.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Role in 2006-14 global food crisis:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Though only 5-7% of the world\u2019s corn output was used for ethanol production at the peak of the<strong> U.S.\u2019s corn-based ethanol programme<\/strong>, the price effect was widespread and remained the <strong>most important contributor<\/strong> to the 2006-14 global food crisis.<\/li>\n\n\n\n<li>More importantly, the high corn prices were <strong>quickly transmitted to other grain markets<\/strong> as soft grains, such as wheat\/barley, started getting redirected into the livestock industry as corn substitutes.&nbsp;<\/li>\n\n\n\n<li>This was primarily due to the relatively easy substitutability in grain use across<strong> food, feed, and fuel<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Potential challenge to Indian grain markets:<\/strong>\n<ul class=\"wp-block-list\">\n<li>According to government estimates, to meet the EBP target by 2025, India needs 16.5 million tonnes of grains annually.&nbsp;<\/li>\n\n\n\n<li>This is a<strong> sufficiently high quantity<\/strong> to trigger a<strong> short-run price spiral <\/strong>in grain markets.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Challenge with sugarcane based ethanol production:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Unlike in the U.S., sugarcane is the more obvious choice for tropical countries <strong>such as Brazil or India <\/strong>where <strong>cane yields are higher<\/strong>.<\/li>\n\n\n\n<li>More land under water-intensive sugarcane cultivation can displace food production as well as degrade water tables, but these can be regulated by appropriate land-use policies.&nbsp;<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Way ahead<\/span><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The future of India\u2019s renewables strategy hangs on a delicate food-fuel trade-off; and a choice between intensifying hunger and reducing fossil fuel use.\n<ul class=\"wp-block-list\">\n<li>On the one hand, the<strong> government can reconsider its EBP target <\/strong>and stagger it<strong> to contain the contradictions<\/strong>.&nbsp;<\/li>\n\n\n\n<li>On the other hand, we need more investment in public infrastructure, urban design <strong>to contain the fuel demand <\/strong>for automobiles, and in renewables such as solar power.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>To counter the most genuine fear of loss of food security, India <strong>may also shift Focus to next-generation Biofuels<\/strong> like:\n<ul class=\"wp-block-list\">\n<li>Grasses and algae;&nbsp;<\/li>\n\n\n\n<li>Cellulosic material such as bagasse, farm and forestry residue, etc.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><strong>[Q] <\/strong>The future of India\u2019s renewables strategy hangs on a delicate food-fuel trade-off. Examine. What should be the immediate, intermediate and long-term approach with regard to India\u2019s ethanol blending programme?<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2023\/12\/Daily-Editorial-Analysis-20-12-2013.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Syllabus: GS3\/ Environmental Pollution &amp; Degradation In context Ethanol Blending India\u2019s National Biofuel Policy Current scenario of Ethanol Blending in India&nbsp; Issues &amp; challenges Way ahead [Q] The future of India\u2019s renewables strategy hangs on a delicate food-fuel trade-off. Examine. What should be the immediate, intermediate and long-term approach with regard to India\u2019s ethanol blending [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-19850","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/19850","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=19850"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/19850\/revisions"}],"predecessor-version":[{"id":19969,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/19850\/revisions\/19969"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=19850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=19850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=19850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}