Introduction: Enhancing Ethanol Production
In a strategic move to bolster its clean energy initiatives, the Government of India has approved an additional allocation of 2.8 million tonnes of rice from the Food Corporation of India (FCI) for ethanol production during the 2024–25 Ethanol Supply Year (ESY). This decision increases the total rice allocation for the Ethanol Blended Petrol (EBP) programme to 5.2 million tonnes, aiming to meet the national target of 20% ethanol blending in petrol by 2025–26.
Details of the Allocation
The additional rice will be provided to distilleries at a subsidized rate of ₹22.50 per kilogram, facilitating the production of approximately 2.45 billion litres of ethanol. The Ethanol Supply Year spans from December 2024 to October 2025, aligning with the government’s fiscal planning and energy requirements.
Objectives of the EBP Programme
The primary objectives of the Ethanol Blended Petrol programme include:
- Reducing dependence on imported fossil fuels: By increasing the domestic production of ethanol, India aims to decrease its reliance on foreign oil imports.
- Cutting carbon emissions: Ethanol-blended petrol produces fewer greenhouse gases compared to pure petrol, contributing to environmental sustainability.
- Promoting cleaner energy alternatives: Encouraging the use of biofuels supports the transition towards renewable energy sources.
- Providing remunerative prices to farmers: The demand for ethanol creates an alternative market for agricultural produce, potentially increasing farmers’ incomes.
Concerns and Challenges
Despite the benefits, this initiative raises several concerns:
- Food security: Diverting a significant quantity of rice from the food supply chain to fuel production may impact the availability of staple grains for consumption.
- Ethical considerations: Utilizing edible grains for industrial purposes during periods of nutritional stress poses ethical dilemmas.
- Impact on livestock feed: The diversion of rice may affect the availability of feed for livestock, potentially influencing the agricultural ecosystem.
Significance for Competitive Exams
Understanding this development is crucial for aspirants of various competitive exams, including UPSC, SSC, Banking, Railways, and State Civil Services. Questions related to energy policies, government schemes, and their socio-economic implications are commonly featured in these examinations.
📌 Why This News is Important
Relevance to Energy Policy
This decision underscores the government’s commitment to enhancing domestic biofuel production as part of its broader energy strategy. Aspirants should be aware of such initiatives as they reflect the evolving landscape of India’s energy policies.
Socio-Economic Implications
The allocation of food grains for industrial use highlights the balancing act between energy needs and food security. Understanding these trade-offs is essential for comprehending the complexities of policy-making in a developing economy.
🕰️ Historical Context
Evolution of the EBP Programme
Launched by the Ministry of Petroleum and Natural Gas, the Ethanol Blended Petrol programme aims to reduce India’s dependence on fossil fuels and promote cleaner energy sources. Over the years, the programme has seen incremental increases in ethanol blending targets, reflecting the country’s commitment to sustainable energy practices.
Previous Allocations
Prior to this allocation, the government had sanctioned 2.4 million tonnes of FCI rice for ethanol production. The current increase signifies a proactive approach to meeting the growing demand for ethanol and achieving the 20% blending target.
📋 Key Takeaways from “Centre Allocates 2.8 Million Tonnes More FCI Rice for Ethanol”
| S. No. | Key Takeaway |
|---|---|
| 1. | The government has approved an additional 2.8 million tonnes of FCI rice for ethanol production in 2024–25. |
| 2. | The total rice allocation for the EBP programme now stands at 5.2 million tonnes. |
| 3. | Distilleries will receive rice at a subsidized rate of ₹22.50 per kilogram. |
| 4. | The initiative aims to produce approximately 2.45 billion litres of ethanol. |
| 5. | The move aligns with India’s target of 20% ethanol blending in petrol by 2025–26. |
FAQs: Frequently Asked Questions
1. What is the total rice allocation for ethanol production in India for 2024-25?
- The total rice allocation for the 2024-25 Ethanol Supply Year is 5.2 million tonnes.
2. What is the price at which rice will be supplied to distilleries for ethanol production?
- The rice will be supplied to distilleries at a subsidized rate of ₹22.50 per kilogram.
3. What is the target for ethanol blending in petrol by 2025-26?
- The Indian government has set a target of 20% ethanol blending in petrol by 2025-26.
4. How much ethanol is expected to be produced from this rice allocation?
- The total rice allocation is expected to produce around 2.45 billion litres of ethanol.
5. Why is the allocation of rice for ethanol production important?
- The allocation supports India’s energy transition, reduces dependence on imported fossil fuels, and aims to reduce carbon emissions while creating economic opportunities for farmers.
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