The government should be flexible with its Ethanol Blended Petrol programme, maintaining the E20 target as a long-term goal while allowing for a temporary reduction to E15 when domestic ethanol availability is insufficient, according to a research paper from ICRIER.
The paper, titled Food vs Fuel: Recalibrating India’s Ethanol Blending Strategy, said the choice between maintaining E20, importing ethanol and temporarily reducing blending should ultimately depend on their relative economic costs under prevailing conditions.
“Such a mechanism would allow the programme to respond to temporary agricultural shocks without compromising the longer-term objective, the paper co-authored by agricultural economist Ashok Gulati said.
India has rapidly expanded its Ethanol Blended Petrol (EBP) Programme. Ethanol is produced from agricultural commodities such as sugarcane, maize and surplus rice.
“The final safeguard should be flexibility in the blending rate itself.
“The 20 per cent target can
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