Economic Survey Warns of Ethanol Blending's Impact on Food Security and Crop Patterns
While India's ethanol-blending programme has saved over ₹1.44 lakh crore in foreign exchange, the Economic Survey 2025-26 warns of its 'non-trivial' impact on food security. The expansion of maize cultivation for ethanol is replacing essential crops like pulses and oilseeds, particularly in states like Maharashtra and Karnataka. This shift could lead to increased imports of edible oils and higher food prices. The Survey highlights a tension between 'Aatmanirbharta' (self-reliance) in energy versus food. It cautions that long-term imbalance might expose domestic food prices to greater volatility during global supply shocks.
Key Points
- Ethanol blending saved ₹1.44 lakh crore in foreign exchange as of August 2025.
- Maize cultivation for ethanol is displacing pulses and oilseeds in key states.
- The shift in cropping patterns may increase India's dependence on edible oil imports.
- There is an emerging tension between energy self-reliance and food security.
- Ethanol blending has substituted about 245 lakh metric tonnes of crude oil.
Exam Facts
- Foreign exchange saved: ₹1.44 lakh crore.
- Crude oil substitution: 245 lakh metric tonnes.
- Key states affected: Maharashtra, Karnataka.
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