Hindu Editorial Analysis : 20-December-2023

India’s renewable energy strategy is at a crucial juncture, navigating a delicate trade-off between food and fuel in its pursuit of ethanol blending. This blending involves mixing ethanol with gasoline to create environmentally friendly fuel options.

Ethanol Blending: A Green Solution
  • Ethanol, derived from plants, is renewable and environmentally friendly.
  • Blending enhances fuel combustion, reducing emissions and pollution.
  • Higher octane number improves petrol quality.
National Biofuel Policy: A Roadmap to Energy Independence
  • Aims to reduce import dependency through fuel blending.
  • Key elements: Ethanol Blending Programme, second-generation ethanol, fuel additives production, feedstock R&D.
  • Offers financial incentives to achieve policy goals.
Ethanol Blending Petrol (EBP) Program: Transforming Energy Landscape
  • Aims to enhance energy security, reduce import dependence, save foreign exchange, address environmental concerns, and boost agriculture.
  • Significant achievements: 1.6% in 2013-14 to 11.8% in 2022-23.
  • Government’s ambitious target: 20% ethanol blending by 2025-26.
Current Scenario: A Tightrope Walk for India
  • Global push for renewable energy triples by 2030.
  • Challenges: Low sugar stocks, impending sugarcane shortfall.
  • Transition to grains-based ethanol: NAFED and NCCF authorized for maize procurement.
Issues & Challenges: Navigating Troubled Waters

Connection with Crude Prices

  • Sugarcane (Brazil) and corn (U.S.) major feedstocks.
  • Ethanol production linked to crude prices; slow process without subsidies.

Food-Fuel Conflict

  • Sugarcane process has minimal trade-off with sugar output.
  • Corn-based ethanol directly competes with food production, impacting food prices.

Role in 2006-14 Global Food Crisis

  • 5-7% of world’s corn for ethanol caused a widespread price effect.
  • High corn prices affected other grain markets, contributing to the global food crisis.

Potential Challenges to Indian Grain Markets

  • To meet 2025 EBP target, India needs 16.5 million tonnes of grains annually.
  • Risk of short-run price spiral in grain markets.

Challenge with Sugarcane-based Ethanol Production

  • Sugarcane is suitable for tropical countries like India but poses challenges in water-intensive cultivation.
Why In News

The future of India’s renewables strategy hangs on a delicate food-fuel trade-off, emphasizing the need for sustainable solutions that harmonize the nation’s energy goals with its agricultural priorities.

MCQs about India’s Ethanol Blending Strategy and Future Challenges

  1. What is the primary goal of India’s National Biofuel Policy?
    A. Reducing pollution
    B. Encouraging fuel blending
    C. Increasing ethanol exports
    D. Promoting crude oil dependency
    Correct Answer: B. Encouraging fuel blending
    Explanation: The National Biofuel Policy aims to reduce dependence on imports by promoting fuel blending, including bioethanol, biodiesel, and bio-CNG.
  2. Which program is instrumental in enhancing energy security and reducing import dependency in India?
    A. National Agricultural Cooperative Marketing Federation of India (NAFED)
    B. Ethanol Blending Petrol (EBP)
    C. National Cooperative Consumers’ Federation of India (NCCF)
    D. Second-generation Ethanol Program
    Correct Answer: B. Ethanol Blending Petrol (EBP)
    Explanation: The EBP program, promoted by the government, aims to enhance energy security, reduce import dependency, save foreign exchange, address environmental concerns, and boost agriculture.
  3. Why does the use of corn for ethanol production pose a unique challenge compared to sugarcane?
    A. Corn-based ethanol is more expensive
    B. Corn production has a minimal impact on food markets
    C. Corn directly competes with food production
    D. Corn-based ethanol has lower environmental benefits
    Correct Answer: C. Corn directly competes with food production
    Explanation: Unlike sugarcane, using corn for ethanol production diverts grain from food or livestock feed, creating a direct link between food prices and crude oil prices through demand.
  4. What led to the advancement of India’s ethanol blending target from 2030 to 2025-26?
    A. Decreased interest in renewable energy
    B. Low sugar stocks and sugarcane production concerns
    C. Overwhelming success of the Ethanol Blending Petrol (EBP) program
    D. Global decrease in crude oil prices
    Correct Answer: B. Low sugar stocks and sugarcane production concerns
    Explanation: The 20% ethanol blending target was advanced to 2025-26 due to challenges such as low sugar stocks in 2022-23 and the impending shortfall in sugarcane production.

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