India must cater to the food requirements of a large population with rising incomes and changing dietary preferences, simultaneously reducing its dependence on imported fossil fuels
India’s push towards ethanol is being presented as an important step towards energy security. This is easily understandable since we import a large part of the crude oil we consume and every litre of petrol replaced by domestically produced ethanol can reduce that dependence. Farmers tend to benefit too, as ethanol opens up another market for sugarcane, maize and other feed stocks. However, increased ethanol blending raises another question. What happens when the same crops, used to produce fuel are also needed to produce food?
Earlier, the concern was the escalating price of sugar. Now look at something as ordinary as an egg whose prices have risen by around 35-40 per cent over the past year, according to data from the National Egg Coordination Committee. Eggs that cost around Rs 7 a piece at the farm are now being sold at roughly Rs 9 in retail markets. Undoubtedly there are several factors behind food prices and it would be simplistic to attribute the increase entirely to ethanol, but one connection is inescapable. The rising diversion of maize towards ethanol production has added pressure to feed costs, which can in turn affect egg prices.
Maize is an important ingredient in poultry feed, and is increasingly used to produce ethanol. Industry estimates suggest that around 37 per cent of India’s maize production is now going to ethanol distilleries, while the poultry industry experts suggest poultry industries consumes around 60 per cent of country’s maize making it directly compete with the ethanol industry. The poultry farmer needs maize to feed chicken, while the ethanol producer needs maize to produce fuel. When demand for the same crop rises from two different sectors, prices inevitably come under pressure, affecting both.
Meanwhile the country has moved towards its 20 per cent ethanol blending target, with ethanol production from maize increasing sharply, from one million tonnes in 2022 to six million tonnes in 2024, and considerably higher levels today, while sugarcane and sugar based feed stocks continue playing an important role in ethanol production. The immediate temptation is to blame ethanol for sugar price hikes, but sugar prices are influenced by many factors, including sugar production, weather, international prices, exports, domestic demand and government policy, making it unfair to declare ethanol is making sugar expensive.
Yet the bigger issue cannot be dismissed easily. India must cater to the food requirements of a large population with rising incomes and changing dietary preferences, simultaneously reducing its dependence on imported fossil fuels. There must be a trade-off between the two legitimate objectives requiring agricultural land and crops. For years, maize was largely thought of as a crop for food, animal feed and industry, today it is a source of fuel, changing the economics of the crop. If an ethanol producer is willing to pay more for maize, the poultry farmer has little choice either to absorb the higher cost or pass it on to consumers, the increased cost that will eventually reach our breakfast table.
Perhaps India should have concentrated more aggressively on electric vehicles (EVs) instead of relying so heavily on blending ethanol into petrol. Only EVs are not problem free either. The gap between charging stations installed and those actually operational illustrates one of the practical challenges of making a rapid transition to electric mobility. As of March 1, 2026, India had 27,737 public EV charging stations, with only 22,753 operational, according to data presented by the government in Parliament. Batteries require critical minerals, charging infrastructure is still uneven, and much of the electricity used to charge vehicles ultimately comes from conventional power sources. EVs are also not suitable for every kind of transport. Ethanol, on the other hand, can be produced within the country and provides an additional market for farmers.
The way forward is not abandoning ethanol. Brazil shows what is possible when a country builds an ecosystem around sugarcane ethanol. But India’s E10-E20 debate raises a different question. E20 can reduce petrol imports and benefit farmers, but concerns remain about lower mileage, possible wear or damage to fuel-system component and the compatibility of some older E10 vehicles with higher ethanol blends. At the same time, higher ethanol use means greater demand for crops also required for food and animal feed. So should India remain at E20, or reconsider a lower blend such as E10? There is no easy answer. Perhaps we need a balanced transition, using ethanol where it makes economic sense while accelerating electric mobility. Energy security should not come at the cost of food security.
The humble egg has, unexpectedly, brought us back to a much larger question. When a crop can either feed us or fuel our vehicles, what should come first?
(Priyan R Naik is a columnist and independent journalist living in Bengaluru.)
