India will pursue 20% ethanol blending by 2025-26 to improve farmers’ income.
India will be observing the highest ever achievement for the country as it will meet the 20% ethanol blending target in petrol by 2025-26 which will not only reduce the dependency of the nation on fossil fuels but also benefit farmers because this program is likely to increase Rs 35,000 Crores annually, Suresh Gopi said while Minister of State for Petroleum and Natural Gas.
Since it was initiated in 2003 with the introduction of ethanol blending in petrol, this programme has seen tremendous momentum in the last few years and has successfully met the total sustainability goals of the country by 2030. Steadily increasing, blending rates have made India one of the world’s fastest-growing consumers of biofuels and an example for other countries that seek to cut carbon emissions and push cleaner alternatives.
India’s Ethanol Blending Programme Progress
The ethanol blending scheme of India has been doing good mileage over the last decade. The Public Sector Oil Marketing Companies (OMCs) have met their target of 10% ethanol blending-five months prior to the deadline for the 2021-22 Ethanol Supply Year. As of the end of the year 2022-23, it had moved up to 12.06% and for 2023-24 nearly 14.6%.
These are the benefits achieved with emphasis on EBP Programme where the country saves its reliance on fossil fuel apart from saving surplus stock of sugar. Mixing ethanol into petrol saves foreign exchange as the country is no more importing petroleum products, thus saving the amount of foreign exchange spent there. Total foreign exchange thus saved from September 2024 till date stands approximately Rs 1,08,655 Crores.
It also worked as the lifeline to the sugar industry since it permitted earning of the early revenues and paying out all the due amounts by the cane farmers. Supposedly, it had made an outlay of approximately Rs 92,409 Crores to the farmers until September 2024, that is nine years from inception. The same improved the liquidity condition of farmers allowing time payments, thus making the agricultural economy much more robust.
Financial Impact and Support to Farmers
Much-needed money it brings to farmers: It brings much-needed money into the farmers’ coffers in the ethanol blending program. Ethanol, mainly coming from sugarcane and other biomass, aids consumption of excess sugar stocks as well as provides cane growers with early payments. After reaching the 20 per cent target for ethanol blending, it is going to enhance income of millions of farmers from one single annual payout worth Rs 35,000 Crore.
This economic effect is not only on the agricultural sector because increased ethanol production generates investment in biofuel infrastructure and creates jobs and increases the rural economy. Ethanol blending program addresses sugar surplus and provides a stable market for sugarcane thereby playing a very significant role in maintaining price stability in the agricultural sector.
Role of Biofuels in Carbon Emissions Reduction
Another important component of the environmental policy of India is ethanol. Ethanol is a biofuel that comes mainly from feedstocks of plant origin, such as sugarcane and maize. Since part of the fossil fuel gets replaced by a cleaner greener fuel, carbon emissions also get reduced due to the blending of ethanol in petrol. Apart from carbon emission reduction, blending leads to better air quality since harmful pollutants such as carbon monoxide and particulate matter reduce.
This is in line with India’s long-term sustainability goals, which committed to achieving its climate objectives by 2030. Reducing the consumption of fossil fuels is what makes India minimize carbon footprint and enhances its energy security through reducing dependency on imported oil.
Blending with Ethanol Some Policies Support Among many such policy initiatives by the Indian government, one major enabler has been the National Policy on Biofuels 2018, which makes it possible to enhance both the production and use of biofuels. The policy is not only promoting the development of bioethanol plants but is also making provisions to stabilize the price of ethanol based on raw material costs, thereby ensuring an appropriate price for producers and consumers alike. Other than NPB, Pradhan Mantri JI-VAN Yojana, an initiative towards integrating the scheme came into existence in March 2019 and which integrated Jaiv Indhan – Vatavaran Anukool Faslon Ki Unnati Yojana. Under this scheme, integrated bio-ethanol plants received financial help, thus bringing about a fresh lot of commissioning production units. These steps have strengthened the capacity of ethanol production in India, given a smoother run to the issues of the supply chain, and made biofuel a sure thing to blend with petrol.
Future Target: E20 by 2025-26 Now, after E10, the present targets of the Govt of India in another stride of more higher E20 ethanol blending by 2025-26. Doubling the current blending rate will thus usher in a whole array of benefits: namely, import substitution of crude, enhanced development of alternative clean fuels, and thirdly, additional impetus to the agricultural economy. E20 will continue to contribute to achievement of objectives in terms of energy security, reduction of carbon footprint, and making the transport sector generally more sustainable. But the accomplishment of 20% blending would require long-term investment, not only in the form of infrastructure but also ethanol production plants, storage facilities, and distribution networks. Conclusion: The program of ethanol blending is one of the most important steps forward towards energy independence, reduction of carbon emissions, and the encouragement of the agricultural economy. India has aspirations of reaching 20% blending in the period 2025-26, which should deliver some very strong, substantial both monetary and environmental returns. It has some issues related to scale increases and stable supplies. The support from robust policy together with additional investment into this space will facilitate success going ahead.
Source: Hindustan Times, Ministry of Petroleum and Natural Gas