India's ethanol push leads to a big increase in land used for fuel production

In just four years, the land used for ethanol production has increased eight-fold.

Sugarcane is now surpassed by grain-based ethanol

Experts warn that fuel-driven push could strain food and feeding systems

Bhasker Tripathi

India imports 85% of its crude oil. Using more ethanol made from sugarcane, maize and rice is one way to increase its energy security.

The state-run oil companies mix 20% ethanol into each litre of petrol before it reaches the pump.

Data presented this month by Delhi-based Arcus Policy Research showed that the area of land used for ethanol feedstocks has increased from 0.7m hectares to 5.7m hectares between 2024-25. This reflects a rapid increase in grain-based production.

According to Arcus Policy Research, India's ethanol program was initially driven primarily by sugarcane surpluses. However, by 2024-25, only 32% (of the ethanol) supplied to public fuel retailers would be made from sugarcane.

Researchers and industry executives said that the shift in crop choice is changing, with maize being used more for fuel, and government rice stocks being heavily relied upon to meet blend targets. This was discussed at a recent policy discussion, where data were presented.

India has increased the amount ethanol in petrol by more than 13 times in just a decade. From 1.5% in 2014, to 20% in 2025. This is five years earlier than scheduled, despite some drivers' concerns over engine wear and reduced fuel efficiency.

The government claims that the switch to biofuel has saved 12 billion dollars in crude oil imports, and prevented 54.4 millions tonnes of carbon dioxide emissions over a decade. This is equivalent to emissions produced by 12 million petrol cars each year. The government also described the fuel efficiency reduction as marginal.

Gains come at a cost. Diversion of grain crops to fuel production has led to concerns about land and water usage, as well. This expansion has also caused tensions in certain rural regions due to the expanding footprint of distilleries.

Scientists are still debating whether crop-based bioethanol reduces emissions significantly once land and water required to grow crops is taken into account.

ETHANOL RESHAPS AGRICULTURE

Shweta Sains, CEO of Arcus Policy Research said: "The rapid expansion reflects India's ethanol program moving away from sugarcane to grains like maize and rice."

The data revealed that nearly 29% of India’s maize production in 2024-25 was diverted to ethanol, and maize cultivation increased from 9.9 millions hectares in 2010-11, to 13.7million hectares.

Researchers reported that the shift is beginning to affect agricultural supply chains. It will impact feed markets, crop selections and land use patterns.

Saini stated that farmers who grow maize to produce ethanol, which produces a byproduct used for animal feeding, have already affected the market for soya beans, a key ingredient in animal feeds in India.

She said, "Suddenly the soybean farmers suffered because a biofuel was being produced."

Former policymakers and researchers have also expressed concern about the increasing diversion of rice from government stocks to ethanol production.

Siraj Hussain, former agriculture secretary of India, said that much of the broken rice supplied for ethanol is still suitable for human consumption. It would have previously been distributed to India's public food distribution system.

According to the Indian government, a record amount of 5.2 million tons of rice was allocated from state stocks for ethanol production between 2024 and 2025.

Nutrition security could be a trade-off

Saini stated that the issue was a reflection of?wider contradictions within Indian agriculture policy. Governments continue to encourage paddy cultivation, despite repeated calls for diversification towards pulses and less-water-intensive crops.

She said that, while the supply of food grains may be stable, the shift in land use and incentives to fuel-linked crops could affect India's "nutrition" security. This is especially true as India remains heavily dependent on imported edible oils and pulses.

As part of the austerity measures announced by Prime Minister Narendra Modi, rising energy prices related to Middle East conflict increased pressure on India’s foreign exchange reserves.

India's ethanol drive is not likely to slow down, as policymakers and industry associations are increasingly promoting higher blends than E20 in order to reduce the country's dependence on imported oil.

The programme, according to industry executives, has created a huge domestic market for crops such as sugarcane and maize, and helped reduce oil imports.

Vijendra Singh is the president of All India Distillers Association. He said that it makes economic sense to go with ethanol. When money is 'directed to rural economies, this ethanol program has advantages.

Singh dismissed concerns that the expansion of ethanol would reduce food production. He argued that farmers would continue to grow crops based on demand and profitability. He said that the farmer would decide what was best for him.

Requests for comments were not answered by the Department of Agriculture and Farmers Welfare and the Ministry of Petroleum and Natural Gas.

(source: Reuters)