Drought Puts India's 20% Ethanol Blending Target at Risk as Food Takes Priority
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India's plan to mix 20 per cent ethanol into petrol is facing a serious challenge. Drought conditions in several parts of the country are reducing the supply of crops used to make ethanol, and officials are now weighing the needs of food security against the government's clean energy goals.
Ethanol is produced mainly from sugarcane juice, molasses and grains such as maize and rice. The government has pushed ethanol blending for several years, hoping to reduce oil imports, cut vehicle emissions and give farmers a new source of income. However, poor rainfall has lowered crop yields, and the same raw materials are also needed to feed millions of people and to supply the food market. As a result, there are concerns that using more grain for fuel could push up food prices.
Government sources say that food supply will remain the first priority. Some policymakers are considering limits on the use of grains for ethanol production and may rely more on sugarcane-based ethanol and other feedstocks. Industry groups have asked for clear and stable policies so that fuel producers can plan their investments. Experts say that the 20 per cent target may take longer to reach than originally planned, especially if the drought continues into the next harvest season.
Sources: The Economic Times
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