Govt Encouraging Farmers to Diversify from Water Intensive Crops to More Sustainable Crops like Maize for Ethanol Production: Minister

March 24, 2025

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(ChiniMandi) The government is encouraging farmers to enhance maize production to boost ethanol output, the minister stated.

“Government is encouraging farmers to diversify from water intensive crops like rice, sugarcane, etc. to more sustainable crops like maize for ethanol production. The “Roadmap for Ethanol Blending in India 2020-25” has also noted that technological advancements have made it possible for molasses-based distilleries with incineration boilers and grain-based distilleries to become zero liquid discharge (ZLD) units, resulting in negligible pollution,” said Suresh Gopi, Minister of State in the Ministry of Petroleum and Natural Gas, while answering an unstarred question in the Rajya Sabha.

He also stated, “Government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme with multiple objectives including reducing import dependence, savings in foreign exchange, providing boost to domestic agriculture sector and for associated environment benefits. Since 2014-15, Ethanol blending in Petrol (EBP) Programme has resulted in expeditious payment to farmers of more than Rs.1,04,000 crore up to January 2025, besides approximate savings of more than Rs.1,20,000 crore of foreign exchange, net CO2 reduction of about 626 lakh metric tonne and crude oil substitution of more than 200 lakh metric tonnes. The National Policy on Biofuels promotes and encourages use of feedstocks such as corn, cassava, rotten potatoes, damaged food grains like broken rice, food grains unfit for human consumption, maize, sugarcane juice & molasses, agriculture residues (Rice straw, cotton stalk, corn cobs, sawdust, bagasse etc.). The extent of utilization of individual feedstock for ethanol production varies annually, influenced by factors such as availability, costs, economic feasibility, market demand, and policy incentives. Any diversion of sugarcane juice, its by-products, maize etc. for ethanol production is carefully calibrated in consultation with relevant stakeholders.”

The minister also emphasized that the government has implemented measures to support the poultry industry and stated, “Around 60% of the country’s maize is utilized by the poultry industry. To ensure steady availability and affordability of poultry feed, diversification in feed sources has been promoted. Additionally, farmers are encouraged to incorporate alternative feed ingredients like sorghum, broken rice, and bajra (pearl millet) as poultry feed. Further, producing ethanol from grains like maize yields a valuable co-product known as Dried Distillers Grains with Solubles (DDGS), which is rich in protein and widely used as cattle and poultry feed.” READ MORE

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Explained: How ethanol from maize has ignited a Fuel vs. Feed debate -- Diversion of maize for biofuel has turned India from a surplus producer and exporter to an importer of the feed grain. There is pressure now to even allow imports of genetically modified maize for ethanol production (Indian Express)

Excerpt from Asia News Network: India’s transition to cleaner energy sources has entered a pivotal phase with the Ethanol Blended Petrol (EBP) Programme, a key pillar of the nation’s strategy to cut crude oil imports, lower carbon emissions and uplift rural economies.

India’s transition to cleaner energy sources has entered a pivotal phase with the Ethanol Blended Petrol (EBP) Programme, a key pillar of the nation’s strategy to cut crude oil imports, lower carbon emissions and uplift rural economies. At the core of this programme lies grain-based ethanol—a domestic, renewable and scalable solution that has the potential to revolutionise both the agriculture and energy sectors. The future of this revolution, however, hinges on more significant adoption of flex-fuel technologies and sustained support for maize and other grain production.

Ethanol has emerged as a versatile fuel alternative. Historically, India relied on sugarcane-based ethanol; however, recent data indicate that grains such as maize and rice have surpassed sugar in ethanol production. According to the NITI Aayog’s Bio-Fuel Roadmap, grain-based ethanol accounted for 57 per cent of India’s ethanol production in ESY 2023-24. This shift is not just about feedstock availability, but also about sustainability and efficiency.

Grains, especially maize, are far more water-efficient than traditional alternatives. NITI Aayog data highlights that maize requires only 2.57 kilolitres of water to produce a litre of ethanol, compared to 3 kilolitres for sugarcane. Given that sugarcane and paddy account for nearly 70 per cent of India’s irrigation water use, this shift to grains is not only logical but essential.

The government has also played a key role in supporting this transition. The Minimum Support Price (MSP) for maize has steadily increased from Rs 1,850 per quintal in 2020 to Rs 2,225 in 2024-25, according to the Uttar Pradesh Agriculture Department. Capital investments worth Rs 30,000 crore in distilleries and associated infrastructure have poured into rural India, reinforcing the link between ethanol production and economic empowerment.

The supply of maize poses a challenge since current maize production levels are insufficient to meet the growing needs of the ethanol industry. This is where flex-fuels come into play. Maize is being suitably replaced with surplus rice and damaged food grains. By allowing vehicles to run on varying ethanol blends, even up to 100 per cent ethanol, India can unlock new demand for biofuels, provide farmers with stable markets and reduce its dependence on fossil fuels. Countries like Brazil have demonstrated the success of flex-fuel technology. India must now follow suit, creating an enabling environment through incentives, infrastructure and awareness.

Grain-based ethanol is not just a fuel; it is an opportunity to align India’s energy policy with agricultural resilience and climate action. Flex-fuel vehicles are the catalyst that can bring this opportunity to life. With the right policies and public support, India can fuel its future with ethanol, empowering both farmers and the environment. READ MORE

Excerpt from Indian Express:

Not for nothing that the feed industry wants liberalisation of maize imports, more so given rising prices and domestic demand-supply imbalances.

India now allows up to 0.5 mt of maize imports annually at 15%, with quantities beyond that attracting 50% duty. Also, it does not permit imports of genetically modified (GM) maize. Out of the 0.94 mt imported during April-January 2024-25, 0.51 mt was from Myanmar and 0.39 mt from Ukraine, which do not grow GM maize.

“We aren’t demanding any change of government policy on GM maize imports with regard to food or feed. All we are seeking is these be allowed for ethanol production. The imported GM maize will not be for use as seed (that farmers can plant) or for feed and food, but only for making fuel ethanol,” explained CLFMA of India’s Gulati.

Opening up imports of GM maize will benefit the world’s top three exporters: United States, Brazil and Argentina. They mainly cultivate GM maize. The US, in particular, is looking for new markets after China – until recently the largest buyer of its maize and soyabean, which is also GM – has practically stopped imports from the country.

“The government may have to take a considered decision on permitting duty-free imports, including of GM maize. This might help check soaring feed costs for poultry and dairy producers, but the interests of our maize and soyabean farmers cannot be ignored either,” a sugar industry source noted.

A win-win situation, he added, would be to increase domestic production of maize by boosting yields and diverting acreages from rice that is both water-guzzling and in surplus: “We need more maize and it should replace rice, not soyabean or cotton”. READ MORE