NEW DELHI: Experts called for greater accountability from the government over the diversion of rice for ethanol production, questioning claims that blending ethanol with petrol benefits consumers and farmers while boosting the country’s economy.
The interactive discussion at the Indian Women’s Press Corps (IWPC) explored the government’s fuel policy and ethanol blending and their implications for the economy, agriculture, food security and the environment on Monday.
The experts sought an independent assessment of the costs associated with ethanol, petrol prices, payments to farmers, and the economic and food security implications of diverting rice and other crops for fuel.
Energy expert D Raghunandan said that ethanol has a lower calorific value than petrol, which means that vehicles would require more ethanol to produce the same energy. He pointed to the additional costs of vehicle operation, including repairs, arguing that consumers would bear a higher financial burden.
“Where is the evidence that farmers are getting more?” Raghunandan qasked. He also sought transparency on whether payments linked to the ethanol boom are reaching the farmers directly.
Raghunandan said, distilleries seem to be the primary beneficiaries of this programme, as the industry is assured of recovering its investments. He questioned the assertion that only poor-quality rice is being used for ethanol production, saying there were indications that good-quality rice is also being diverted.
Drawing a reference from Brazil, where ethanol is offered at significantly lower prices than petrol, he said consumers there have options, including flex-fuel vehicles. Raghunandan argued that India should evaluate whether its current model offers comparable benefits.
Former agriculture secretary Siraj Hussain noted that the Centre has invested heavily in second-generation ethanol projects, including bamboo-based initiatives in Assam, which have shown limited results.He said that India has developed ethanol production capacity of 20 bn litres after facilitating loans of about Rs 42,000 crore, despite an estimated requirement of 13 bn litres.
Agricultural economist Ramesh Chand suggested that reducing rice acreage could be beneficial from an environmental standpoint, especially in upland areas, if rice is replaced with pulses and oilseeds to help reduce methane emissions.
