India’s ambitious ethanol plan

Subject – Environment

Context – India’s ambitious ethanol plan fuels food security concerns

Concept –

India’s ambitious plan to cut the use of fossil fuels by promoting ethanol derived from rice, corn and sugar is drawing criticism from some experts who warn the move could undermine food security in the world’s second-most populous country.
In June, Prime Minister Narendra Modi’s administration accelerated the nation’s ethanol goal by five years, seeking to double production and to have gasoline 20 per cent blended with the spirit by 2025.
To help meet the target, the government is offering financial assistance to biofuel producers and faster environmental clearances. The plan is also resulting in the diversion of food grains meant for the poor to companies at subsidised rates.
The government argues that the new target will help the world’s third-largest oil consumer save ₹300 billion ($4 billion) annually by cutting crude imports, reduce carbon emissions and boost farmers’ incomes.

To know more about Ethanol and Ethanol blending programme in India, please click here.

To know about National Policy on Biofuels, please click here.