Balancing Biofuel and Food Security: India’s Ethanol Challenge

The Economic Survey cautions that India's biofuel mandates could distort cropping patterns if not recalibrated. India's ethanol programme has boosted maize production but poses a risk to food security and crop diversity. A balanced policy is needed to maintain both energy and food security.

The Economic Survey has issued a warning regarding the potential long-term impact of India's biofuel mandates on cropping patterns and food prices. The mandates, including ethanol blending in petrol, could favor certain crops at the expense of others, affecting agricultural diversity and food security.

India's ethanol initiative mandates a 20 percent doping of ethanol in petrol, which initially focused on sugar-based feedstocks but now includes food grains like maize. This has led to significant gains such as reduced crude imports and lower emissions. However, the shift towards maize is affecting the production of other essential crops.

The report emphasizes the need for a comprehensive policy to maintain energy and food security. It calls for balanced incentives to avoid market distortions, ensuring that ethanol goals do not compromise food security. Without careful calibration, the trend could disrupt cropping patterns in states like Maharashtra and Karnataka.

(With inputs from agencies.)