India's Ethanol Blended Petrol Programme Clarified to Protect Food Security

The Indian government has clarified that its Ethanol Blended Petrol Programme does not compromise the country's food security. The Ministry of Petroleum and Natural Gas stated that every grain procured under the Minimum Support Price system is first allocated for public distribution, national welfare schemes, and mandatory buffer stocks.

Only surplus stocks certified by the Department of Food and Public Distribution after meeting all food security requirements are approved for ethanol production. Damaged grain, broken rice, and other unusable stocks are also used to produce clean energy.

The programme is designed to use a flexible mix of approved feedstocks based on availability, with FCI rice accounting for only a negligible share of ethanol production in Ethanol Supply Year 2023-24. The government highlighted that the programme has resulted in foreign exchange savings of over Rs 1.97 lakh crore and reduced crude oil imports by over 316 lakh metric tonnes.

The Ministry also rejected claims that ethanol blending survives only through taxpayer support, stating that the objective is to protect consumers from fluctuations in global crude oil prices. During a period when international crude oil prices touched around $135 per barrel, ethanol blending helped shield domestic fuel prices from a sharper increase.