India’s Ethanol Gamble Tests Energy Policy and Consumer Patience
India’s nationwide rollout of E20 petrol—fuel blended with 20% ethanol—marks one of the most ambitious interventions in the country’s energy and agriculture strategy. Officials forecast annual foreign exchange savings of ₹43,000 crore, a cumulative ₹1.44 lakh crore since 2014, and direct payments of ₹40,000 crore to sugarcane farmers this year. Yet consumers and automakers are already confronting the practical costs of transition, while environmental and agricultural trade-offs sharpen the policy debate.
Energy and farm economics
The government says E20 has displaced 245 lakh metric tonnes of crude oil, cutting import costs and stabilising rural incomes. For sugarcane growers, surplus harvests now feed distilleries, easing payment delays and supporting local job creation. Policymakers fr...