The Centre on Friday defended the Ethanol Blended Petrol (EBP) Programme, stating that it has strengthened India’s energy security, reduced dependence on imported crude oil and increased farmers’ incomes, while ensuring that food security remains fully protected.
In a statement, the government rejected claims that foodgrains meant for the poor were diverted for ethanol production or that subsidized rice was being supplied to distilleries at the cost of taxpayers.It clarified that foodgrain procurement first meets the requirements of the Public Distribution System (PDS), the National Food Security Act (NFSA), welfare schemes and mandatory buffer stock norms. Only surplus stocks, certified by the Department of Food and Public Distribution after meeting all food security obligations, are approved for ethanol production.
Addressing concerns over the use of Food Corporation of India (FCI) rice, the Centre said FCI rice is only one of several approved raw materials used for ethanol production and follows the same government pricing framework as other feedstocks.According to the government, ethanol produced from maize receives the highest procurement price at ₹71.86 per litre, followed by sugarcane juice/syrup (₹65.61/litre), damaged foodgrains (₹64/litre), B-heavy molasses (₹60.73/litre), FCI rice (₹60.32/litre) and C-heavy molasses (₹57.97/litre).
The statement noted that FCI rice contributed only 0.02 per cent of ethanol production during Ethanol Supply Year (ESY) 2023-24. Its share increased to 24.64 per cent in ESY 2025-26 only after surplus stocks became available, while the share of maize declined from 42.6 per cent to 35.96 per cent, reflecting the programme’s flexible feedstock policy.
The government also said the programme helped protect consumers during periods of high global crude oil prices. It noted that when the Indian crude basket rose to around US$135 per barrel, petrol prices without ethanol blending were projected to reach around ₹125 per litre in Delhi. However, consumers paid ₹94.77 per litre, as 20 per cent ethanol blending helped cushion the impact of volatile international oil prices.
Highlighting the programme’s achievements, the government said the EBP Programme has resulted in Foreign exchange savings of more than ₹1.97 lakh crore,substitution of over 316 lakh metric tonnes of crude oil imports,reduction of over 950 lakh metric tonnes of carbon dioxide emissions besides more than ₹1.66 lakh crore in payments to farmers and distillers.
The Centre reiterated that the objective of ethanol blending is to reduce India’s dependence on imported crude oil, which currently accounts for nearly 88 per cent of the country’s oil requirement. It described the programme as an important component of India’s long-term energy security strategy, helping shield consumers from global oil price volatility while promoting cleaner fuels and supporting the agricultural sector.
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