04/09/2026
India has reached 20% ethanol blending in petrol E20— five years ahead of its original 2030 target.
In this episode of Value for Money, Dr Ashok Gulati joins Yashodhara Bajoria to ask the question India cannot afford to skip: Can fuel self-reliance strengthen India without weakening food, water and fiscal security?
India’s official data show that agriculture and allied activities grew 3.6% in Q1 FY2026-27; at the same time, IMD projected below-normal southwest-monsoon rainfall for 2026, making the next phase of crop output and food prices especially important to watch.
This is not an argument against ethanol. It is a conversation about the full cost of ethanol — from the field to the fuel tank, and from crop policy to the grocery bill.
In this conversation, we explore
- Why E20 is a genuine energy-security achievement — but not the whole story.
- Why India must look beyond petrol imports and ask which feedstocks are being used, where they are grown and what resources they consume.
- Why rice, sugarcane and maize cannot be treated as interchangeable ethanol inputs.
- What greater demand for maize and other feedstocks could mean for poultry-feed costs, eggs, milk and household food prices.
- Why India cannot simply copy the United States or Brazil without accounting for differences in crop productivity, irrigation, rainfall and farm incentives.
- Whether FCI rice, timely sugar imports, imported ethanol, or a temporary reduction in the blending ratio can act as safety valves during supply shocks. FCI rice has previously been made available to ethanol distilleries through auctions, making its use a live policy question.
- What farmers gain from ethanol demand — and why better yields, smarter crop choices and rational incentives matter more than simply raising blending targets.
- Why the real test for a “clean” fuel should include water, power, fertiliser, transport, processing, food security and fiscal costs.
- Why a weak monsoon could affect crop output, food inflation, rural incomes and consumption in the quarters ahead.
Watch this conversation till the end, and follow DeKoder for more.