Context : Government’s Plan for Ethanol Production
- India aims to achieve 20% ethanol blending with petrol in the next two months, a year ahead of schedule.
- This requires the production of 1,100 crore litres of fuel ethanol in one year.
Relevance : GS 3(Environment , Energy Security)
- Key raw materials for ethanol production:
- Sugar & high-grade molasses (~400 crore litres).
- FCI rice & broken rice (~110 crore litres).
- Maize (~400 crore litres).
India’s Ethanol Distillery Capacity
- Current ethanol distillery capacity: 1,600 crore litres.
- Growth driven by government incentives and a stable market.
- Shift towards grain-based ethanol production to reduce dependency on sugar.
Role of Maize in Ethanol Production
- India’s maize production is traditionally used for poultry, livestock feed, starch, and human consumption.
- Increase in maize imports since April 2024 due to restrictions on sugar-based ethanol.
- April–June 2024: ₹100 crore worth of maize imported.
- April–November 2024: $188 million worth of maize imported.
- Ethanol demand has encouraged more maize cultivation in major states like Karnataka, MP, Maharashtra, Andhra Pradesh, Rajasthan, Bihar, and UP.
- 2024-25 maize production: Estimated at 42 million tonnes, with 9 million tonnes allocated for ethanol production.
Impact of Maize-Based Ethanol Production
- Potential Benefits:
- Boost for farmers: Higher earnings due to ethanol market.
- Oil import savings: 100 crore litres of ethanol = ₹6,000 crore saved on oil imports.
- Increased domestic ethanol production reduces reliance on fossil fuels.
- Potential Challenges:
- Food security concerns: Shift in maize usage may impact food grain availability.
- Market disruption: Poultry and livestock feed sectors may face price hikes.
- Sustainability concerns: Long-term viability depends on balanced crop allocation.
- Possible Mitigation Strategy:
- DDGS (Distiller’s Dried Grains with Solubles), a byproduct of ethanol, can replace maize in poultry feed, reducing disruption.
Conclusion
- India’s ethanol push is on track ahead of schedule, aided by government policies and expanding distillery capacity.
- Maize has emerged as a key feedstock for ethanol, but reliance on imports raises concerns.
