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6 Jul 2026ECONOMY3 questions

Ethanol Blending in India: Fuelling Energy Security and Farmer Prosperity

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Article summary

India's Ethanol Blended Petrol (EBP) Programme has achieved a blending ratio of approximately 15–17% in petrol as of 2025-26, up from a negligible 1.5% in 2013-14, with the government targeting 20% blending (E20) by 2025-26 under the National Biofuel Policy 2018. The programme is anchored in three policy pillars: energy import substitution, agricultural income support for sugarcane and maize farmers, and reduction of vehicular carbon emissions. Ethanol is procured from sugar mills and distilleries at government-fixed prices and blended by Oil Marketing Companies (OMCs) such as IOC, BPCL, and HPCL. The programme has saved over ₹1 lakh crore in foreign exchange since 2014 and transferred significant revenue to the farm sector. For UPSC, this topic sits at the intersection of GS3 energy security, agricultural economics, and India's climate commitments under the Paris Agreement.

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recallTests whether you read the article and retained key facts.
1Q
applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

ECONOMYRecallEasy

Q1. With reference to India's Ethanol Blended Petrol programme, which one of the following statements is correct?

AThe Ministry of Agriculture and Farmers' Welfare is the nodal ministry, and State governments fix ethanol purchase prices annually.
BThe National Biofuel Policy of 2018 deferred the E20 target from 2025-26 to 2030 in its 2022 amendment.
CThe Ministry of Petroleum and Natural Gas is the nodal ministry, the CCEA fixes ethanol purchase prices annually, and the 2022 amendment to the National Biofuel Policy advanced the E20 target from 2030 to 2025-26.
DEthanol may be produced only from sugarcane molasses, other feedstocks being excluded under the policy.
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ECONOMYApplicationMedium

Q2. The National Biofuel Policy establishes a priority order among ethanol feedstocks, placing damaged and surplus foodgrains first, sugarcane-derived material second and agricultural residues third. Which one of the following best explains the purpose of that hierarchy?

AIt seeks to avoid food-fuel conflict by directing the programme first toward material that has already lost its value as food, before drawing on crops or land that could otherwise feed people.
BIt reflects the descending calorific value of the three categories, the first yielding the most energy per tonne.
CIt ranks the feedstocks by cost, damaged foodgrains being the most expensive and residues the cheapest.
DIt is a technical sequence indicating the order in which a distillery must process material within a single production cycle.
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ECONOMYAnalysisHard

Q3. Consider the following statements: 1. India's ethanol blending rose from about 1.5 per cent in 2013-14 to roughly 10 per cent by 2021-22 and about 15 per cent by 2023-24. 2. The PM JI-VAN Yojana supports second- and third-generation biofuels from lignocellulosic biomass such as agricultural residue and bamboo, and is distinct from the Ethanol Blended Petrol programme. 3. The PM JI-VAN Yojana and the EBP programme are the same scheme, the former being the name adopted for the latter after 2018. Which of the statements given above are correct?

A1 only
B1 and 2 only
C2 and 3 only
D1, 2 and 3
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