Optimizing India’s Ethanol Blending Roadmap: Balancing Energy Security and Agricultural Resilience

India’s ambitious Ethanol Blended Petrol (EBP) programme, aimed at achieving 20% blending (E20) by 2025-26, has been a cornerstone of the nation’s energy transition strategy. By reducing dependence on crude oil imports and providing an alternative revenue stream for farmers, the policy serves both economic and environmental objectives. However, the Indian Council for Research on International Economic Relations (ICRIER) has highlighted a critical vulnerability in this framework: the potential conflict between fuel production and food security during periods of agricultural distress. The core of the ICRIER recommendation lies in the adoption of a 'flexible blending' mechanism. Currently, the EBP programme operates on a relatively rigid trajectory. ICRIER suggests that in years marked by poor harvests, drought, or supply-side constraints—which directly impact the availability of feedstock like sugarcane and food grains—the government should have the institutional agility to temporarily lower the blending mandate from E20 to E15. This buffer mechanism would prevent the diversion of essential food crops toward fuel production, thereby mitigating inflationary pressures on food prices and ensuring that the Public Distribution System (PDS) remains adequately stocked.