October 6, 2025

India biofuel driving saves billions but also concerns

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Getty Images A fuel pump worker, in a saffron dress, putting fuel in a bicycle. The pumping machine can be seen in the background.Getty images

The Indian government says that the ethanol mixture has reduced 69.8 million tonnes of carbon dioxide emissions since 2014

India’s desire to mix more biofuels with gasoline has helped the country reduce millions of tonnes of carbon dioxide emissions and save precious dollar reserves.

But he also aroused concerns among vehicle owners and experts in food policy on his potential impact on energy efficiency and food security.

Last month, India reached its objective of mixing 20% ethanol with petrol, known as E20, five years ahead of its objective.

The government considers this to be a game changer to reduce carbon emissions and cuttings of cutting oil. Since 2014, the ethanol mixture has helped India reduce 69.8 million tonnes of carbon dioxide emissions and has saved 1.36 billion of rupees ($ 1.5 billion; £ 1.1) in foreign currency.

A study of the Think Tank Council on Energy, Environment and Water (CEEW), based in Delhi, shows that carbon carbon dioxide emissions in India will be almost doubly by 2050.

“Fuel demand will only increase and switch to petrol mixed with ethanol is absolutely necessary to reduce emissions,” Sandeep Sandeep told the Indian Green Energy Federation, an organization that promotes green energy.

But many vehicles in India do not comply with E20, making their owners skeptical about the advantages of politics.

Hormazd Sorabjee, editor -in -chief of Autocar India magazine, said that ethanol has a “lower energy density than petrol and is more corrosive”. The result is a lower mileage and exposes certain parts of the vehicle to a greater risk of wear.

Mr. Sorabjee added that some manufacturers like Honda have been using compliant E20 materials since 2009, but many older vehicles on Indian roads are not compatible with E20.

Although there are no official data on the impact of fuel E20 on engines, consumers regularly share anecdotes on the deterioration of their vehicle on social networks.

Many standard insurance policies in India do not allow damage either due to the use of non-compliant fuel, a senior executive of the Policybazaar online insurance platform, which wanted to remain anonymous, told the BBC.

“Consumers must take complementary policies, but even these complaints can be refused or demoted depending on the small characters of the policy,” he added.

The Federal Ministry of Petroleum has described these concerns as “largely unfounded”.

In an article on X, the ministry said that engine adjustment and E20 compatible materials could minimize the drop in mileage. He also advised to replace certain parts in older vehicles, saying that the process was cheap and “easily carried out during regular vehicle maintenance”.

Getty Images A worker, wearing a turquoise white checkered shirt and blue jeans, inside a factory, working with thatched.Getty images

The expansion of the use of ethanol could signify divert more agricultural products in the manufacture of fuel

Mr. Sorabjee told the BBC that, although milage concerns are real, they are not “always as bad as those”.

The greatest concern, he said, was potential damage to vehicle materials due to the corrosive properties of the E20.

Some vehicle manufacturers offer means to mitigate this.

Maruti Suzuki, the largest manufacturer of four wheels in India, would be likely to introduce a kit of E20 equipment which could cost up to 6,000 rupees ($ 69; £ 51). The kit would replace components such as fuel pipes, joints and joints. Bajaj, a first Indian manufacturer in two-wheelers, advised to use a fuel cleaner that could cost around 100 rupees ($ 1.15; £ 0.85) for a full petrol tank.

But all vehicle owners are not convinced. Amit Pandhi, who has a Maruti Suzuki car in Delhi since 2017, is unfortunate that petrol pumps do not offer the choice to opt for a mixture other than E20.

“Why should I have to buy petrol that offers less mileage and then spend more to make the materials in conformity?” He asked.

In 2021, a document on the transition from India to the E20 published by Niti Aayog, a group for the government, had highlighted some of these concerns. He recommended tax advantages for the purchase of vehicles in accordance with E20s, as well as a lower retail price for fuel.

The government defended its decision not to adopt the recommendations, saying that at the time of the report of the report, ethanol was cheaper than essence.

“Over time, the price of the supply of ethanol has increased and now the weighted average price of ethanol is higher than the cost of refined petrol,” said the oil ministry earlier this month.

Getty Images The Federal Minister of India for oil and natural gas Hardeep Singh Puri, wearing a blue jacket and a turban, with his lifted hand, is addressed to a rally. Getty images

India seeks to increase ethanol mixture in essence in the years to come

It is not only consumers – the government’s mixed fuel push has also been concerned among climate researchers and food policy experts.

Ethanol is produced from crops such as sugar cane and corn, and expanding its use means that agricultural products diverted to make more fuel.

In 2025, India would need 10 billion liters of ethanol to meet its E20 requirements, according to government estimates. Demand will amount to 20 billion liters by 2050, according to the Bengaluru -based reflection group, Center for Study of Science, Technology and Policy (CSTEP).

Currently, sugar cane is used to produce around 40% of Indian ethanol.

This puts India in a link. He must choose between continuing his dependence on sugar cane – which has a higher yield for ethanol but which is with high water intensity – or to use food crops such as corn and rice to produce fuel.

But change comes with its own challenges.

In 2024, for the first time in decades, India has become a net importer of corn, using large quantities of harvest to make ethanol.

Ramya Natarajan, a researcher at CSTEP, said that the diversion of products has had a significant impact on the poultry sector, which must now spend more to buy corn for raw materials.

In addition, this year, the Food Corporation of India (FCI) approved an unprecedented allowance of 5.2 million tonnes of rice for ethanol production. Rice in FCI actions is reserved for the poor of India at a subsidized rate.

Politics could lead to an “agricultural disaster in a few years,” said Devinder Sharma, an agricultural sector expert.

“In a country like India, where 250 million people are hungry, we cannot use food to feed cars,” said Sharma.

To meet the demand for ethanol by corn and sugar cane in a 50-50 ratio – as indicated by Niti Aayog – India should bring an additional eight million of land under the cultivation of corn by 2030, unless there is a drastic increase in yield, according to CSTEP.

But even it could cause problems.

“If farmers replace the rice or the culture of wheat with corn, it would be lasting because we have enough surplus of these cultures. But we need other crops such as oil seeds and legumes,” said Natarajan.

Ms. Natarajan added that continuing with the E10 mixture – petrol mixed with 10% ethanol – would have been a more ideal choice.

India, however, plans to go even beyond E20.

“The country will now be gradually evolved towards E25, E27 and E30 in a phase and calibrated manner,” said the Minister of Petroleum, Hardeep Puri.

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