India Eyes Brazil’s Ethanol Path

New Delhi is considering a major expansion of its ethanol blending program, mirroring Brazil’s decades-old initiative, as global energy prices rise. India currently mandates 20% ethanol in petrol, but draft rules propose allowing blends up to 100% for personal vehicles. This move aims to reduce reliance on imported crude oil—estimated savings reached ₹1.7 trillion between November 2014 and February 2026—and support farmers by increasing demand for crops like sugarcane, maize, and rice.

However, varying estimates exist regarding the scale of future ethanol production. Industry groups predict requirements ranging from 1.4 to five times current levels, depending on policy and consumer adoption. Concerns also arise about land use and water consumption, as rice-based ethanol production requires nearly 10,000 liters of water per liter of fuel.

Farmers in some states are already shifting from oilseeds and pulses to biofuel crops, potentially increasing India’s dependence on imports of these essential foods. While Brazil achieved biofuel success with a smaller population, India faces challenges balancing energy independence with food security and sustainable resource management.