How Has the Ethanol Blending Programme Benefited Farmers with Over Rs 1,36,300 Crore?
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Synopsis
Discover how the Ethanol Blended Petrol Programme has transformed the agricultural landscape in India, ensuring farmers receive substantial payments while contributing to environmental sustainability through reduced emissions and increased crop diversification.
Key Takeaways
- Ethanol Blended Petrol Programme has paid farmers over Rs 1,36,300 crore.
- Saved more than Rs 1,55,000 crore in foreign exchange.
- Achieved a net reduction of 790 lakh metric tonnes in CO2 emissions.
- Sugar production has surpassed domestic demand in 2024-25.
- Government promotes sustainable agricultural practices.
New Delhi, Dec 1 (NationPress) The Ethanol Blended Petrol (EBP) Programme has led to rapid financial disbursements to farmers, amounting to over Rs 1,36,300 crore since the commencement of the Ethanol Supply Year (ESY) 2014-15 until October 2025, as reported to Parliament on Monday.
This initiative has also facilitated savings exceeding Rs 1,55,000 crore in foreign exchange, achieved a net reduction of approximately 790 lakh metric tonnes of CO2 emissions, and allowed for the substitution of more than 260 lakh metric tonnes of crude oil, as stated by Minister of State for Petroleum and Natural Gas, Suresh Gopi, in a written response to the Rajya Sabha.
According to the Department of Food and Public Distribution (DFPD), sugar production in India has surpassed domestic consumption during the Sugar Season (SS) 2024-25 (October-September).
During SS 2024-25, sugar availability reached 340 lakh metric tonnes (LMT), with 34 LMT diverted for ethanol production, compared to a domestic sugar demand of 281 LMT, as highlighted by the minister.
The diversion of sugar for ethanol production has been instrumental in stabilizing excess sugar inventories nationwide and ensuring timely payments to farmers for their cane dues. Additionally, maize production has surged nearly 30 percent, increasing from 337.30 LMT in 2021-22 to 443 LMT in 2024-25.
Furthermore, to promote the use of non-food biomass for producing second-generation ethanol, the government has initiated the Pradhan Mantri JI-VAN (Jaiv Indhan-Vatavaran Anukool fasal awashesh Nivaran) Yojana, which provides financial support for advancing bio-fuel projects that utilize lignocellulosic biomass and other renewable feedstocks.
The minister also mentioned that the government is encouraging farmers to shift from water-intensive crops like rice and sugarcane to more sustainable options such as maize for ethanol production.
The Roadmap for Ethanol Blending in India 2020-25 has acknowledged that technological advancements have enabled molasses-based distilleries equipped with incineration boilers and grain-based distilleries to operate as zero liquid discharge (ZLD) units, resulting in minimal pollution.
Finally, the government is advocating for water conservation practices in sugarcane cultivation by promoting drip irrigation through the ‘Per Drop More Crop’ initiative. Many sugar mills are also conducting awareness campaigns to encourage cane farmers to adopt water-saving techniques.
Point of View
It is imperative to recognize the significance of the Ethanol Blending Programme in supporting Indian farmers while simultaneously addressing environmental concerns. This initiative not only promotes economic stability but also fosters a shift towards sustainable agricultural practices, aligning with national priorities.
NationPress
01/12/2025
Frequently Asked Questions
What is the Ethanol Blended Petrol Programme?
The Ethanol Blended Petrol Programme is a government initiative aimed at blending ethanol with petrol to reduce dependency on fossil fuels, support farmers, and mitigate environmental impact.
How much money has the programme provided to farmers?
Since its inception in 2014-15, the programme has disbursed over Rs 1,36,300 crore to farmers.
What are the environmental benefits of this programme?
The programme has resulted in savings of over Rs 1,55,000 crore in foreign exchange and a reduction of approximately 790 lakh metric tonnes of CO2 emissions.
How has sugar production been affected?
Sugar production has exceeded domestic demand during the Sugar Season 2024-25, with significant quantities diverted for ethanol production.
What initiatives support sustainable farming practices?
The government promotes the use of non-food biomass for ethanol production and encourages farmers to adopt water-efficient crops and irrigation techniques.
