Introduction
India has set an ambitious goal: blending 20% ethanol into petrol by 2025–26. This move aims to reduce the country’s dependence on imported oil and lower greenhouse gas emissions. However, the path to achieve Moving Beyond Sugar and Rice by Rethinking Ethanol target is fraught with challenges, especially concerning the sources of ethanol production. Traditionally, ethanol in India has been produced from sugarcane and surplus food grains like rice. While these sources have served well initially, they are now presenting significant constraints, prompting a shift towards more sustainable alternatives like second-generation (2G) ethanol derived from rice straw.
The Limitations of Sugar-Based Ethanol: Why India Needs to Look Beyond Sugar
India is aiming to blend 20% ethanol into petrol by 2025–26 to reduce oil imports and fight pollution. For the past few years, most of India’s ethanol has come from sugarcane, especially molasses and sugarcane juice. While this helped launch India’s ethanol program, it’s now clear that sugar alone can’t take us all the way. There are serious problems with relying too much on sugarcane to make ethanol.
Let’s take a closer look at the limitations—and why it’s time to explore better, cleaner alternatives.
1. Sugarcane Production Is Falling
Sugarcane farming depends a lot on water, healthy soil, and good weather. Recently, sugar output has been falling because of:
- A disease called red rot damages crops.
- Less rainfall and dry weather in key sugarcane regions.
- Lower sugar recovery rates, meaning less sugar is extracted from the same crop.
In the 2024–25 season, India’s sugar production dropped from 315.4 to 257.4 lakh metric tons. This directly affects ethanol production, as less sugar means less ethanol.
2. Too Much Water Is Needed
Sugarcane needs a lot of water. Producing just one litre of ethanol from sugarcane can take nearly 2,860 litres of water. In areas where water is already scarce, this puts a big strain on farmers and the environment.
If we continue to use sugarcane for ethanol, it may worsen water shortages, especially in places like Maharashtra and Uttar Pradesh.
3. Using Sugar for Fuel Affects Food Prices
Sugar is not just for making ethanol—it’s a food product. If more sugarcane is used to make fuel, there’s less sugar available for people to eat. This can cause sugar prices to rise.
Also, if ethanol prices go up or sugar production falls, the fuel supply is affected. This creates a risky situation where food and fuel are competing for the same crop.
4. Limited to Few States
Sugarcane is grown mostly in certain states. Ethanol plants are usually located near these sugarcane farms. This means:
- Ethanol has to be transported long distances, which costs more.
- Some states don’t have the right infrastructure to blend ethanol into petrol.
So, relying only on sugar-based ethanol doesn’t support nationwide fuel blending equally.
5. Climate Risks
Sugarcane farming is vulnerable to climate change. Unpredictable rains, extreme heat, and crop diseases make it hard to grow sugarcane consistently. This means ethanol supply from sugar is unstable and risky for the future.
The Risks of Diverting Rice for Ethanol
In an attempt to diversify ethanol sources, the government approved the use of surplus rice from the Food Corporation of India (FCI) for ethanol production. While this move aims to utilize excess stock, it raises several concerns:
- Food Security Threats: Diverting rice, a staple food for a significant portion of the population, towards ethanol production can lead to food shortages and increased prices, especially during years of poor harvests.
- Environmental Concerns: Rice cultivation is water-intensive. Increasing its production for ethanol purposes can strain water resources, exacerbating environmental issues.
- Policy Implications: The decision to use food grains for fuel has sparked debates about the balance between energy needs and food security, emphasizing the need for alternative solutions.
Embracing 2G Ethanol from Rice Straw: A Sustainable Alternative
Given the challenges associated with sugarcane and rice, attention is turning towards second-generation (2G) ethanol produced from agricultural residues like rice straw. This approach offers multiple benefits:
- Abundant Raw Material: India produces approximately 168 million tons of rice straw annually, with about 39 to 47 million tons available as surplus. Utilizing this waste not only provides a sustainable feedstock for ethanol but also addresses the issue of stubble burning, which contributes to air pollution.
- Environmental Benefits: Converting rice straw into ethanol reduces greenhouse gas emissions and mitigates the environmental hazards associated with stubble burning.
- Economic Opportunities: This approach can provide farmers with an additional source of income by selling their agricultural waste, promoting rural development.
Khaitan Bio Energy: Leading the 2G Ethanol Revolution
Khaitan Bio Energy is at the forefront of this sustainable shift. The company has patented technology to produce 2G ethanol using rice straw, demonstrating high efficiency and lower costs due to production of additional products namely, Silica and Gypsum. Their pilot plant has already showcased an end-to-end process with zero liquid discharge, utilizing advanced technologies for sugar treatment, dewatering, and recycling. Prioritising a sustainable and green future is the need of the hour and Khaitan Bio Energy is committed to achieving that goal through its innovations.
Conclusion: Charting a Sustainable Path Forward
India’s ethanol blending targets are commendable, aiming to enhance energy security and reduce environmental impact. However, the current reliance on sugarcane and rice poses significant challenges, including food security risks and environmental concerns. Embracing 2G ethanol production from rice straw offers a viable and sustainable alternative, addressing these issues while promoting rural development and environmental conservation.
Khaitan Bio Energy is showing how new and smart solutions can help India reach its clean energy goals. By turning farm waste into fuel, the company is helping the country move toward a greener and safer energy future—one that supports both the needs of people and the health of the planet.