India Ethanol Blending is strengthening the country’s energy security while protecting food security and supporting farmers, the Central Government said while clarifying misconceptions surrounding the Ethanol Blended Petrol (EBP) Programme.
Responding to recent allegations regarding the use of Food Corporation of India (FCI) rice and the economics of ethanol blending, the government clarified that grains meant for the Public Distribution System (PDS), National Food Security Act (NFSA), welfare schemes and mandatory buffer stocks are never diverted for ethanol production. According to the clarification, only surplus stocks certified after meeting all food security commitments are permitted for ethanol manufacturing.
The government further stated that damaged grains, broken rice and foodgrain unsuitable for human consumption are also utilised under the programme, ensuring that surplus agricultural resources are put to productive use instead of going to waste. It added that the expansion of second-generation (2G) ethanol through the Pradhan Mantri JI-VAN Yojana will further reduce dependence on foodgrain-based feedstocks by promoting ethanol production from agricultural residue.
Addressing claims that FCI rice is supplied to distilleries at concessional rates, the Centre said rice is only one among several approved raw materials used for ethanol production and is priced under the same government-approved framework applicable to other feedstocks such as maize, sugarcane juice, molasses and damaged foodgrains. It emphasised that ethanol producers select feedstocks based on availability rather than preferential pricing.
The clarification also noted that FCI rice contributed only 0.02 per cent of ethanol production during Ethanol Supply Year (ESY) 2023-24. Its share increased to nearly one-fourth in ESY 2025-26 after surplus stocks became available, while the contribution of maize declined during the same period, reflecting the programme’s flexible feedstock approach.
On concerns regarding ethanol pricing, the government maintained that the programme should be assessed in terms of long-term energy security rather than direct fuel price comparison. It pointed out that during the sharp rise in global crude oil prices, domestic ethanol procurement at pre-determined prices helped moderate fuel costs and reduced the impact of international oil market volatility on Indian consumers.
According to official figures, the Ethanol Blended Petrol Programme has so far resulted in foreign exchange savings of more than ₹1.97 lakh crore, replaced over 316 lakh metric tonnes of crude oil imports, reduced carbon dioxide emissions by over 950 lakh metric tonnes and generated payments exceeding ₹1.66 lakh crore to farmers and distillers.
The government reiterated that with India continuing to import nearly 88 per cent of its crude oil requirement, ethanol blending remains an important component of the country’s strategy to strengthen energy independence, create stable demand for agricultural produce and improve environmental sustainability.
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