India’s Ethanol Push Must Not Come at the Cost of Its Water Future

Much of India’s ethanol is produced from sugarcane and, increasingly, surplus rice. Both are among the most water-intensive agricultural crops cultivated in the country. According to estimates based on the Water Footprint Network and studies by the International Water Management Institute (IWMI), producing one litre of ethanol from rice may require close to 10,000 litres of water, while ethanol derived from sugarcane may require around 3,000 litres, although the exact figures vary depending on irrigation practices, climate, soil conditions, and crop productivity, writes Dr Rajvir Singh Rathore.

India’s ethanol blending programme is one of the country’s most ambitious energy initiatives. By targeting higher ethanol blending in petrol, the Government aims to reduce crude oil imports, strengthen energy security, lower greenhouse gas emissions, and provide a stable market for agricultural produce. These are legitimate and important policy objectives. However, every public policy must be judged not only by its intended benefits but also by its environmental and economic costs. In the case of ethanol, one critical question deserves far greater public attention: Can a water-stressed nation afford to produce transport fuel from water-intensive crops?

The crop coverage data published by the Ministry of Agriculture and Farmers’ Welfare (see Table below) indicate that the area under rice and sugarcane—the two principal feedstocks for ethanol production in India—has not witnessed any sustained expansion over the last five agricultural years. Rice acreage has largely remained stable, with modest year-to-year fluctuations, while sugarcane area increased until 2022–23 before declining during the subsequent two years.

Table : All-India Area (lakh ha) under Major Ethanol Feedstock Crops

Agricultural Year

 

Rice Sugarcane
2020-21 458.6 48.51
2021-22 466.9 51,75
2022-23 450.7 58.85
2023-24 439.9 57.39
2024-25 446.7 54.49

 

This trend is particularly noteworthy because both crops have been supported by strong policy incentives, including assured procurement at Minimum Support Price (MSP) for rice and remunerative pricing mechanisms for sugarcane. Despite these policy interventions, there has been no significant increase in the cultivated area of either crop.

Much of India’s ethanol is produced from sugarcane and, increasingly, surplus rice. Both are among the most water-intensive agricultural crops cultivated in the country. According to estimates based on the Water Footprint Network and studies by the International Water Management Institute (IWMI), producing one litre of ethanol from rice may require close to 10,000 litres of water, while ethanol derived from sugarcane may require around 3,000 litres, although the exact figures vary depending on irrigation practices, climate, soil conditions, and crop productivity.

These numbers become particularly significant when viewed against India’s growing water crisis. Reports of the NITI Aayog and the Central Ground Water Board (CGWB) have repeatedly warned of declining groundwater levels across several states. Uttar Pradesh, Maharashtra, Punjab, Haryana, and Gujarat—states that contribute substantially to ethanol feedstock production—already face increasing pressure on their groundwater resources. Encouraging large-scale cultivation of water-intensive crops for fuel in these regions risks worsening an already fragile situation.

The dilemma is straightforward. Every litre of freshwater diverted to produce ethanol is water that cannot be used for drinking, irrigation of food crops, industrial production, or ecological conservation. As climate change increases rainfall variability and intensifies droughts, water is likely to become India’s most valuable natural resource. Policies that appear beneficial from an energy perspective must therefore also pass the test of water sustainability.

This does not mean ethanol blending is inherently undesirable. On the contrary, it offers genuine advantages. It reduces dependence on imported crude oil, improves the country’s energy resilience, supports rural incomes, and can reduce lifecycle greenhouse gas emissions compared with conventional petrol. These benefits are real and should not be understated.

The challenge lies in how ethanol is produced. If the programme relies predominantly on crops requiring enormous quantities of freshwater, the environmental gains achieved through reduced fossil fuel use may be partially offset by unsustainable water consumption. India should therefore accelerate the transition towards second-generation (2G) biofuels produced from agricultural residues, crop waste, damaged grains unsuitable for human consumption, municipal organic waste, and other non-food biomass. Such feedstocks make productive use of waste materials while substantially reducing pressure on land and freshwater resources.

Another aspect of the ethanol debate deserves a more open and evidence-based discussion: its impact on fuel economy.Government representatives, including the Hon’ble Minister for Road Transport and Highways, have repeatedly assured the public that ethanol-blended petrol performs satisfactorily. Automobile manufacturers have also conducted laboratory tests indicating that vehicles designed for approved ethanol blends can operate safely and efficiently.

However, many consumers report a different experience under real-world driving conditions. My own family’s experience reflects this concern. We have independently used three different vehicles—a Maruti Baleno, a Hyundai Creta, and a Kia Sonet. Across all three, under broadly comparable driving conditions, we have consistently observed a decline in fuel economy of approximately 3-4 kilometres per litre following the widespread availability of higher ethanol blends.

This observation is anecdotal and should not be interpreted as conclusive scientific evidence. Vehicle mileage is influenced by numerous variables, including traffic conditions, driving style, maintenance, tyre pressure, weather, and fuel quality. Nevertheless, when similar experiences are reported by a large number of motorists, they deserve careful investigation rather than outright dismissal. The Hon’ble Minister has suggested that ordinary drivers cannot reliably judge changes in fuel efficiency and that only manufacturers are competent to assess vehicle performance. While laboratory testing undoubtedly provides valuable scientific data, public policy should not rely exclusively on controlled experiments. Laboratory conditions rarely replicate the diverse driving environments encountered on Indian roads. Independent testing by academic institutions, consumer organisations, and research laboratories under real-world conditions would provide a more comprehensive understanding of ethanol’s impact on mileage, emissions, engine durability, and maintenance costs.

Public confidence grows when governments encourage transparent scientific scrutiny rather than viewing legitimate questions as opposition to policy. Independent evidence benefits everyone—policymakers, manufacturers, consumers, and the environment alike.

India’s ethanol programme should therefore evolve beyond a singular focus on blending targets. Equal emphasis must be placed on the sustainability of feedstocks, efficient water use, technological innovation, and independent performance evaluation. Achieving energy security by placing additional stress on scarce surface and  groundwater resources would merely replace one strategic vulnerability with another.

The broader lesson is clear. Sustainable energy policy cannot be designed in isolation from sustainable water policy. In a country where millions already face seasonal water shortages and groundwater tables continue to decline, freshwater itself is a strategic national resource. Its use must be guided by long-term ecological and economic considerations.

Looking ahead, the prospects for expanding ethanol production through additional supplies of rice and sugarcane appear limited. Rising domestic demand for food, animal feed, and other industrial uses is likely to absorb a larger share of production, leaving little surplus for diversion to ethanol. Therefore, relying primarily on rice and sugarcane to meet future ethanol blending targets may not be a sustainable long-term strategy. Greater emphasis on improving crop productivity, utilizing agricultural residues, and developing second-generation (2G) ethanol technologies and alternative feedstocks will be essential to achieve energy security without compromising food security and natural resource sustainability.

The purpose of raising these concerns is not to oppose ethanol blending, but to encourage a more balanced national conversation. Good public policy is strengthened by evidence, transparency, and informed debate. As India pursues energy independence, it must ensure that the pursuit of cleaner fuels does not come at the expense of one of its most precious and increasingly scarce resources—water.

India has the opportunity to become a global leader in sustainable biofuels. That leadership, however, will depend not merely on producing more ethanol, but on producing it more wisely. Prioritising second-generation biofuels, investing in water-efficient technologies, and embracing transparent, evidence-based evaluation of ethanol’s real-world impacts would ensure that the country’s clean energy transition strengthens – not compromises – its environmental future.

(Dr.Rajvir Singh Rathore, Ex Deputy Director General, UPCAR, Lucknow. Views expressed are personal.)

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