Union Petroleum Minister Hardeep Singh Puri on Friday, 10 July 2026, highlighted a significant shift in India's ethanol production strategy — away from water-intensive crops like sugarcane and paddy, and toward maize, a crop that demands far less water. The minister said maize now accounts for nearly 35 per cent of India's ethanol production, a milestone he linked to both rising farmer incomes and improved water conservation.

Context

Posting in Hindi on X (formerly Twitter), Puri stated: 'Bharat ethanol utpadan ko lekar ganne aur dhan jaisi adhik paani wali faslon se hatakar makka jaisi kam paani wali fasal ki or badha hai' — ('India has moved away from water-intensive crops like sugarcane and paddy for ethanol production and shifted toward water-efficient crops like maize'). He added that this transition is simultaneously boosting farmer incomes and advancing water conservation. The post was accompanied by a video.

The pivot is part of a broader government effort to make India's biofuel programme more sustainable — both economically and ecologically — as the country grapples with water stress in major agricultural belts.

Policy Backdrop

India's Ethanol Blended Petrol (EBP) Programme, first launched in 2003, was substantially expanded under the National Policy on Biofuels 2018, which widened the list of permissible feedstocks beyond traditional molasses to include maize, rice, and other grains. Subsequent Cabinet decisions in 2022–23 specifically incentivised maize-based ethanol to reduce dependence on sugarcane — a crop notorious for its heavy groundwater consumption — while keeping the government's ambitious 20 per cent ethanol blending target by 2025 on track.

The Ministry of Petroleum and Natural Gas has coordinated closely with agriculture ministries and Oil Marketing Companies (OMCs) to build procurement pipelines for maize-based ethanol, offering farmers an assured market and a price signal to diversify away from paddy and cane.

Stakeholders and Impact

The primary beneficiaries of the feedstock shift are maize farmers, particularly those in water-stressed states where sugarcane cultivation was never viable and paddy farming is being discouraged to conserve aquifers. An assured ethanol procurement market gives these farmers income stability that open-market grain prices alone cannot guarantee.

From an energy-security perspective, every litre of domestically produced ethanol reduces India's dependence on imported crude oil, easing the foreign exchange burden on the current account. Environmentally, replacing water-guzzling crops in the ethanol feedstock mix directly addresses groundwater depletion — one of the most acute agricultural resource challenges facing Punjab, Haryana, and parts of Uttar Pradesh.

The broader biofuel strategy also contributes to lowering transport-sector emissions, aligning with India's climate commitments under the Paris Agreement.

What's Next

Quarterly ethanol supply data released by OMCs will be closely watched to validate whether the 35 per cent maize share figure holds and grows through the current supply year. Any mid-term review of the 20 per cent blending roadmap by the petroleum ministry could further recalibrate feedstock incentives in favour of low-water crops.

If maize's share continues to climb, it could prompt a formal revision of procurement price structures and push state governments in rain-fed agricultural zones to actively promote maize cultivation as a cash crop — deepening the link between India's energy policy and its water conservation agenda.