E20's a great switch, but there are riders

India's ethanol programme is no vanity project. The goal of blending 20% ethanol in petrol was achieved last month, five years ahead of target. Enthused, GoI is now planning a nationwide rollout of 20% ethanol-blended petrol (E20) by year-end, along with a target of E30 by 2030. However, the rising share of ethanol in the blending programme - from 1.53% in 2014 to 20% in just 10 years - is facing pushback from the petroleum lobby. It has also sparked concerns among vehicle owners and food policy experts about its impact on fuel efficiency and food security. Questions have been raised about the mechanical readiness of existing vehicles to use E20, and a PIL has been filed in the Supreme Court challenging the rollout.

India, the world's third-largest consumer of crude oil, imports 85% of its requirement - about $120 bn annually - leaving the country exposed to global price swings and geopolitical shocks, and even bullying. Beyond easing the fiscal burden, the E20 blend is expected to cut CO2 emissions by 10 mn tonnes a year. Rising ethanol demand has also created new income opportunities for farmers. However, some tough choices lie ahead. Growing vehicle numbers will mean higher ethanol demand, especially if hybrids continue to outpace EVs. Meeting this demand would require either pushing farmers to grow more water-guzzling sugarcane (currently the source of 40% of ethanol), or diverting more rice and maize. While foodgrain shortage is not an immediate concern, such diversion could shrink cultivation of other crops like oilseeds.

To maximise benefits of the E20 programme, but with limited impact on food production, India's path to decarbonising mobility must remain multi-pronged - combining EVs, improved mass transit and ethanol blending.