India E20 Ethanol Blending Success Raises Water and Food Security Concerns

India’s E20 ethanol blending India programme has achieved its 20% blending target five years ahead of schedule, marking a major milestone in the country’s clean energy transition. The initiative has helped save over ₹1.40 lakh crore in foreign exchange and transferred ₹87,558 crore directly to farmers, strengthening rural incomes.

E20 ethanol blending India: Benefits and emerging concerns

Despite its success, the E20 ethanol blending India programme is now facing serious debate over its long-term sustainability. A major concern is water usage in sugarcane cultivation for ethanol production, as nearly 50% of irrigation water in India is used for sugarcane farming. Producing just one litre of sugarcane-based ethanol requires around 2,860 litres of water, raising alarms about groundwater depletion in Maharashtra and Uttar Pradesh.

According to NITI Aayog, continued expansion of ethanol production could increase India’s annual irrigation demand by 50 billion cubic metres by 2070, intensifying pressure on already stressed aquifers. Another concern is the food vs fuel debate in India, as large quantities of rice and maize are being diverted to ethanol production. In 2024–25 alone, 5.2 million tonnes of rice and 34% of maize output were allocated for ethanol, forcing India to import nearly 9.7 lakh tonnes of maize.

Farmers growing sugarcane benefit from assured pricing under the ethanol fuel policy in India, but maize farmers face pricing pressure, while water-stressed states like Punjab, Haryana, and parts of Maharashtra risk worsening ecological imbalance.

In conclusion, while the E20 ethanol blending India programme is a major achievement, experts suggest shifting toward second-generation ethanol from agricultural waste and reducing reliance on water-intensive crops like sugarcane to ensure long-term sustainability.