E-20 / ETHANOL POLITICS IN INDIA - POORLY INFORMED CRITICS
On matters relating to science and technology , experts with considerable expertise offer their views after careful consideration of various factors and taking a holistic and balanced view .
However, politicians without domain expertise and with little or nil understanding of the issues involved, rush with their views on variety of subjects . The particular views offered by the politicians depend on which side of political spectrum that they belong. This has happened several times in the past on matter such as Koodankulam nuclear power project.
However, the politicians get extensive and quick media coverage , as print, visual and social media , look all the time for sensational news and controversial views on any subject by all and sundry. Media publicise such news / views prominently and sometimes even repeatedly. This is what exactly expected and required by the politicians.
Now , this is happening in the case of ethanol blending with petrol.
Why ethanol blending is necessary ?
The main reason for introducing ethanol blended petrol is to reduce the import dependence on crude oil and to reduce noxious gas emissions due to the use of 100% petrol as fuel by the automobiles. Both the above justifications for ethanol blending with petrol are absolutely in order.
India now import around 88% of its crude oil requirement, as domestic production of crude oil is inadequate and it is virtually at present, stand still at present with no feasibility of significantly increasing the domestic production of crude oil in the immediate future.
With the object of reducing the import dependence on crude oil and to overcome the emission issues. Government of India is implementing multiple strategies such as boosting production of renewable energy, incentive for the production of electric vehicles and so on. Amongst such strategies , ethanol blending with petrol is one.
Ethanol blending has increased from 1.53 % in the period 2013-14 to 20% in the period 2025-26, which is remarkable progress and achievement in positive direction.
In the process, India has reduced the import dependence on crude oil to some extent and with savings of Rs. 1.97 lakh crore in foreign exchange.
Fuel efficiency issue ?
The objection of critics for use of 20% ethanol blended petrol (E20 petrol) is that fuel efficiency by use of E 20 petrol would be 3% to 5% less compared to the use of 100% petrol.
Government of India has not denied this and has stated in Rajya Sabha on July,27 , 2026 that the non compatible vehicles may face 3 to 5% drop in fuel economy by using E 20 petrol.
While in the case of non compatible vehicles , fuel efficiency may be marginally low by using E20 petrol, the overwhelming advantage of using E 20 petrol is due to curbing of the import level of crude oil, which should be given a due weightage, when viewing the pros and cons of using E 20 petrol.
Obviously, this points out to the fact that introduction of E 20 petrol is a cost benefit decision and a holistic view has to be taken on use of E 20 petrol.
Ethanol mix with water ?
The next criticism is that in the petrol bunks, in the underground storage tanks, E 20 petrol may blend with water during monsoon period due to possible leakage in the storage, which may corrode the underground tanks.
Whether it is 100% pure petrol or E 20 petrol, blending of water has to be fully avoided. In properly designed and operated underground tanks, there is no reason for water to get into the underground tanks.
Corrosion issue ?
Another argument is that E 20 petrol has the potential to cause corrosion, as ethanol is hygroscopic in nature and material of construction of underground tank and fuel pipe line is made of carbon steel (mild steel).
Mild steel is suitable and widely used for storing fuel-grade ethanol and ethanol blends (like E10 to E100).
This argument is unacceptable, since whether it is E20 petrol or 100% petrol used as fuel in automobiles, water should not be allowed to be mixed in any proportion. There would be no water in E20 petrol just like as in the case of 100% petrol.
Further, Automobile Association of India and several automobile companies have not voiced any particular concern about the use of E 20 petrol in automobiles.
Sugar price issue ?
While all these criticisms against E 20 petrol by critics have fallen flat and all automobiles are using E 20 petrol, without voicing any particular issue, the critics have jumped to a new argument that diversion of sugar cane for ethanol production for blending with petrol have caused price increase for sugar in India during the last few weeks.
Government of India deciding to import one million tonne of sugar is pointed out as the indication of sugar shortage scenario in India.
This argument is not based on facts.
For the recent sugar price surge, the reason is totally different. Due to climatic reasons and monsoon fluctuation, domestic sugar output ( after diversion of cane to ethanol) is expected at about 279 lakh tonne for sugar season (October, 2025 to September,2026), which is lower at 300 and 360 lakh tonne between the period 2021-22 and 2023-24.
Government of India has also pointed out that the share of sugar diverted for ethanol production for use in E 20 petrol has declined from around 12% in the period 2022-23 to around 9% in the period 2025-26, as ethanol is now produced in India from multiple feedstock such as grains.
It is also necessary to note that there are several occasions in the past when India had to import sugar due to shortfall in production due to failure of monsoon or lower yield due to unexpected pest attack at times.
For example, India has allowed duty-free import of 1 million tonne of raw sugar for the 2024–25 marketing year
At present ( as on 27.8.2026) the mill gate sugar price has dropped below
Rs.5000 per quintal, which obviously indicate that criticism that sugar cane diversion for ethanol production for use in E20 petrol is the cause for price increase of sugar price is unwarranted.
Need for objective and balanced view
The critics do not seem to have taken into consideration the several benefits of E 20 petrol such as lower emission, higher octane rating leading to better combustion and benefits to the farming community who get better value addition for the maize and other agricultural feedstock used for ethanol production.
It is high time to realise that the knee jerk reactions and criticisms against worthwhile projects without responsible and informed analysis are counter productive to the economic and social growth of the country.
N.S.Venkataraman
Drector
Nandini Consultancy Centre, Chennai more
However, politicians without domain expertise and with little or nil understanding of the issues involved, rush with their views on variety of subjects . The particular views offered by the politicians depend on which side of political spectrum that they belong. This has happened several times in the past on matter such as Koodankulam nuclear power project.
However, the politicians get extensive and quick media coverage , as print, visual and social media , look all the time for sensational news and controversial views on any subject by all and sundry. Media publicise such news / views prominently and sometimes even repeatedly. This is what exactly expected and required by the politicians.
Now , this is happening in the case of ethanol blending with petrol.
Why ethanol blending is necessary ?
The main reason for introducing ethanol blended petrol is to reduce the import dependence on crude oil and to reduce noxious gas emissions due to the use of 100% petrol as fuel by the automobiles. Both the above justifications for ethanol blending with petrol are absolutely in order.
India now import around 88% of its crude oil requirement, as domestic production of crude oil is inadequate and it is virtually at present, stand still at present with no feasibility of significantly increasing the domestic production of crude oil in the immediate future.
With the object of reducing the import dependence on crude oil and to overcome the emission issues. Government of India is implementing multiple strategies such as boosting production of renewable energy, incentive for the production of electric vehicles and so on. Amongst such strategies , ethanol blending with petrol is one.
Ethanol blending has increased from 1.53 % in the period 2013-14 to 20% in the period 2025-26, which is remarkable progress and achievement in positive direction.
In the process, India has reduced the import dependence on crude oil to some extent and with savings of Rs. 1.97 lakh crore in foreign exchange.
Fuel efficiency issue ?
The objection of critics for use of 20% ethanol blended petrol (E20 petrol) is that fuel efficiency by use of E 20 petrol would be 3% to 5% less compared to the use of 100% petrol.
Government of India has not denied this and has stated in Rajya Sabha on July,27 , 2026 that the non compatible vehicles may face 3 to 5% drop in fuel economy by using E 20 petrol.
While in the case of non compatible vehicles , fuel efficiency may be marginally low by using E20 petrol, the overwhelming advantage of using E 20 petrol is due to curbing of the import level of crude oil, which should be given a due weightage, when viewing the pros and cons of using E 20 petrol.
Obviously, this points out to the fact that introduction of E 20 petrol is a cost benefit decision and a holistic view has to be taken on use of E 20 petrol.
Ethanol mix with water ?
The next criticism is that in the petrol bunks, in the underground storage tanks, E 20 petrol may blend with water during monsoon period due to possible leakage in the storage, which may corrode the underground tanks.
Whether it is 100% pure petrol or E 20 petrol, blending of water has to be fully avoided. In properly designed and operated underground tanks, there is no reason for water to get into the underground tanks.
Corrosion issue ?
Another argument is that E 20 petrol has the potential to cause corrosion, as ethanol is hygroscopic in nature and material of construction of underground tank and fuel pipe line is made of carbon steel (mild steel).
Mild steel is suitable and widely used for storing fuel-grade ethanol and ethanol blends (like E10 to E100).
This argument is unacceptable, since whether it is E20 petrol or 100% petrol used as fuel in automobiles, water should not be allowed to be mixed in any proportion. There would be no water in E20 petrol just like as in the case of 100% petrol.
Further, Automobile Association of India and several automobile companies have not voiced any particular concern about the use of E 20 petrol in automobiles.
Sugar price issue ?
While all these criticisms against E 20 petrol by critics have fallen flat and all automobiles are using E 20 petrol, without voicing any particular issue, the critics have jumped to a new argument that diversion of sugar cane for ethanol production for blending with petrol have caused price increase for sugar in India during the last few weeks.
Government of India deciding to import one million tonne of sugar is pointed out as the indication of sugar shortage scenario in India.
This argument is not based on facts.
For the recent sugar price surge, the reason is totally different. Due to climatic reasons and monsoon fluctuation, domestic sugar output ( after diversion of cane to ethanol) is expected at about 279 lakh tonne for sugar season (October, 2025 to September,2026), which is lower at 300 and 360 lakh tonne between the period 2021-22 and 2023-24.
Government of India has also pointed out that the share of sugar diverted for ethanol production for use in E 20 petrol has declined from around 12% in the period 2022-23 to around 9% in the period 2025-26, as ethanol is now produced in India from multiple feedstock such as grains.
It is also necessary to note that there are several occasions in the past when India had to import sugar due to shortfall in production due to failure of monsoon or lower yield due to unexpected pest attack at times.
For example, India has allowed duty-free import of 1 million tonne of raw sugar for the 2024–25 marketing year
At present ( as on 27.8.2026) the mill gate sugar price has dropped below
Rs.5000 per quintal, which obviously indicate that criticism that sugar cane diversion for ethanol production for use in E20 petrol is the cause for price increase of sugar price is unwarranted.
Need for objective and balanced view
The critics do not seem to have taken into consideration the several benefits of E 20 petrol such as lower emission, higher octane rating leading to better combustion and benefits to the farming community who get better value addition for the maize and other agricultural feedstock used for ethanol production.
It is high time to realise that the knee jerk reactions and criticisms against worthwhile projects without responsible and informed analysis are counter productive to the economic and social growth of the country.
N.S.Venkataraman
Drector
Nandini Consultancy Centre, Chennai more
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View all 21 comments Below 21 comments
It is not always Politician Vs Scientists. With all respect to both the community, they should not take the people, particularly the users, for granted. more
9 h ago
As a scientist, and also having several scientists in my family and friend circle actively racking their brains in this area to come up with a solution which may not be absolutely ideal, but best under the circumstances, and with future scope too, I do not agree with this post at all. I believe it is insulting the people who are so unpolitically and scientifically trying to work in this area. more
Aug 30
Netas have the discretion of speaking on every issue even if they fo not know its meaning. Use of ethanol is curtailing import of crude oil. The prices of petrol can be lowered by 30% if VAT us reduced by 40% by every State which no State can afford. The elected members should also cut their salaries, perks by 50% abolish pension thereby saving money for development and feeding have nots. The prices of their cars be capped at Rs.10.00 lac. No State plane. In case of emergency like floods, it can be hired from the market. more
Aug 30
Simple question. Why is sugarcane, a water intensive crop, encouraged for both sugar and ethanol production in a water sensetive country? Why can't we move on to other form of fuels which are more environmental friendly? Ditto for crops India is the second largest producer of sugarcane in the world. The largest? Brazil. At least they have a much smaller population and the benefit of having one of the largest rivers in the world, the Amazon. As it is, our rivers are polluted and on top of that, we face drought and other El Nino fueled climatic changes. DO WE HAVE TO GROW SUGARCANE? For sugar or Ethanol more
Aug 30
Shree Roy, Mr. Venkatraman has explained in fair detail after considering all the factors. With such heavy dependency (and shortfall) on oil imports, it is surprising that you still are against the introduction of Ethanol in petrol. Could you clarify what other forms of fuels you have in mind ? more
9 h ago
