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Cheaper crude, dearer ethanol: India’s maize bind

India's ethanol blending program has undergone a dramatic shift with maize now supplying nearly 50% of ethanol for petrol blending, up from negligible levels three years ago. This transition comes as cheaper crude oil prices make sugar-based ethanol less economically viable while maize-based ethanol becomes more competitive. The shift has significant implications for food security, agricultural diversification, and India's energy independence goals under the Ethanol Blended Petrol (EBP) programme targeting 20% blending by 2025-26.

Source: The Hindu. This summary and analysis are AI-written from that report and are not individually fact-checked — confirm names, dates and figures with the source before you rely on them.

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Key points

Exam-ready takeaways

Maize accounts for close to 50% of ethanol used in India's petrol blending programme

This share was almost negligible three years ago (around 2021-22)

Shift driven by cheaper crude oil making sugar-based ethanol less viable

Part of India's Ethanol Blended Petrol (EBP) programme targeting 20% blending by 2025-26

Raises concerns about food security and agricultural land use diversion from food to fuel

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