India’s Biofuel Push: Key Drivers, Significance & Challenges

• India’s biofuel push, particularly ethanol blending, is driven by its dual objectives of energy security and climate commitments under the Paris Agreement. However, this shift is increasingly raising red flags over food security, particularly with the diversion of maize and sugarcane from food to fuel.
• As India targets E20 (20% ethanol blending) by 2025, the pressure to allow genetically modified (GM) maize for ethanol production is intensifying.

Key Drivers Behind India’s Biofuel Push

• Energy Security: Biofuels help diversify India’s energy mix, reducing dependence on volatile oil imports and enhancing energy security.
• Import Bill Reduction: Achieving E20 ethanol blending could reduce India’s crude oil import bill by approximately USD 4 billion annually (NITI Aayog).
• Environmental Benefits: A blend of 20% ethanol with petrol reduces carbon emissions by 50% in two-wheelers and 30% in four-wheelers (NITI Aayog).
• Doubling Farmers’ Income: Producing ethanol from surplus crops and residues supports the government’s goal of doubling farmers’ income.
• Job Creation: Biofuel sector expansion could generate up to 18 million jobs in rural India (ADB Report).

Significance of Biofuels

• Rural Economic Growth: Ethanol blending has spurred economic growth in rural areas, increasing farmers’ incomes and generating job opportunities.
• Environmental Benefits: The initiative has significantly reduced CO₂ emissions, which is equivalent to planting 175 million trees.
• Foreign Exchange Savings: Ethanol blending has saved India ₹85,000 crore in foreign exchange by reducing dependency on crude oil imports. (NITI Aayog)
• Energy Security Enhancement: The increased use of biofuels enhances India’s energy security by diversifying its energy mix and reducing reliance on oil imports.
• Job Creation: The growth of the biofuel sector has generated numerous employment opportunities, particularly in rural areas, benefiting both farmers and labourers.

Challenges of India’s Biofuel Push

• Food Grain Diversion: India’s reliance on 1G ethanol technology has resulted in the diversion of food grains, including nearly 1 million metric tonnes of FCI rice for ethanol in 2022.
• Land Misallocation: Expanding sugarcane and maize cultivation for biofuels reduces land availability for essential food crops like pulses and millets.
• Food Inflation Risk: Reduced food crop production resulting from ethanol incentives can trigger price hikes, as seen with the sugarcane ethanol cap in 2023–24.
• Soil Degradation: Continuous cultivation of ethanol-centric crops, such as sugarcane and rice, leads to monoculture, depleting soil fertility.
• Water Overuse: Ethanol-linked crops such as sugarcane consume excessive water, with 1 kg of sugar requiring up to 2,000 litres, which is unsustainable in water-scarce regions.
• Discourages Crop Diversity: Incentives for ethanol crops deter farmers from shifting to oilseeds and pulses, undermining crop diversification strategies.
• Increased Climate Risk: Monoculture reduces biodiversity, increasing vulnerability to pests and diseases.

Way Forward: Balancing Biofuel Growth with Food Security

• Adopt Advanced Biofuels: Shift focus to 2G, 3G, and 4G biofuels utilising non-food feedstocks such as agricultural waste, algae, and engineered organisms.
• Utilise Degraded Land: India has over 55 million hectares of wasteland (NRSC 2019); utilising this land for biofuel crops can help avoid displacing food cultivation.
• Strengthen Food Security Nets: Reinforce NFSA coverage (currently providing subsidised food to approximately 813 million people) to protect vulnerable populations from ethanol-induced food inflation.
• Promote Water Efficiency: Incentivise micro-irrigation (currently adopted on only ~10 million ha out of 140 million net sown area) and resilient feedstocks to reduce water use in biofuel production.
• Reform Incentive Policies: Align subsidies and procurement within the Ethanol Blending Programme to support advanced biofuels and prevent price distortion in food crops.
• Diversify Clean Energy Mix: Complement biofuels with electric vehicles (EVs), green hydrogen, and solar energy to reduce dependence on crop-based fuels. E.g., India aims for 30% EV penetration by 2030.
• Implement Land Use Policy: Establish zonal land-use mapping to prevent ethanol crops from encroaching on high-productivity food-producing regions, preserving the food system’s resilience.

India’s biofuel strategy contributes to SDG 7 (Affordable & Clean Energy) and SDG 8 (Decent Work & Economic Growth), but it must be calibrated to avoid trade-offs with SDG 2 (Zero Hunger) and SDG 12 (Sustainable Consumption). The path forward lies in promoting advanced biofuels, rationalising land use, and ensuring the food-energy-water-environment (FEWE) nexus is preserved for long-term sustainability.

Reference: Indian Express | PMFIAS: Biofuels

PMF IAS Pathfinder for Mains – Question 187

Q. “The transition to biofuels must not come at the cost of hunger.” In light of this statement, discuss the impact of biofuel expansion on food availability and agriculture. Also, suggest a balanced and inclusive approach. (250 Words) ( 15 Marks)

Approach

• Introduction: In the introduction, briefly discuss biofuels and mention the Ethanol Blending Programme.
• Body: Discuss the impact of biofuels expansion on food security and agriculture, and suggest a balanced and inclusive approach.
• Conclusion: Emphasise the importance of biofuels for food security, farmers, and ecological balance, while also mentioning the Sustainable Development Goals (SDGs).