Experts Flag Ethanol-Blending’s Environmental, Land Use Concerns
Written By: Vikas Kaul
Published: August 16, 2026 at 05:35 PM
Updated: August 16, 2026 at 05:35 PM
E20 petrol is now a reality across the country, but the debate around ethanol extends beyond vehicle compatibility and mileage. The latest concerns revolve around:
- Land and Water Use: How much land and water do ethanol feedstocks consume?
- Farmer Choices: What crops do farmers choose to grow for ethanol production?
- Food and Animal Feed Demand: Will fuel demand start competing with food and animal feed markets?
The Rapid Expansion:
Ethanol blending has grown exponentially, rising from below 1.5% in 2013-14 to 20% in 2025-26, achieving the target five years ahead of schedule. Ethanol production capacity has reached around 2,000 crore litres, with projected procurement of over 1,200 crore litres for 2025-26.
The Environmental Cost:
Government documents have acknowledged these concerns for years. The 2021 ethanol roadmap suggested lower-water crops and second-generation ethanol from agricultural residue. More recent NITI Aayog modelling reveals:
- Water Intensity: Producing one litre of sugarcane-based ethanol requires around 2,860 litres of water, while maize requires over 4,600 litres and rice more than 10,700 litres.
- Location Matters: The water footprint varies based on irrigation methods, with rainfall-driven cultivation having a different impact than groundwater irrigation.
Changing Feedstock Mix:
The government has expanded the raw material base to ensure consistent ethanol supply. However, this raises questions about predictability and sustainability. Climate variations can impact crop yields, and a fuel programme needs consistent supply.
The Way Forward:
A more sustainable approach may involve increasing second-generation ethanol from crop residue, waste biomass, and non-food feedstocks. While these plants are supported through the PM JI-VAN programme, scaling them up has been slower and more expensive.
The Trade-Off:
Despite economic benefits, the ethanol programme comes with trade-offs. It has saved Rs 1.9 lakh crore in foreign exchange, substituted 310 lakh tonnes of crude oil, and generated Rs 1.6 lakh crore in additional farmer earnings.