India’s dependence on imported oil means global conflicts often end at the fuel pump. With nearly 85 per cent of crude oil imported, a fiasco in the Strait of Hormuz can trigger price shocks at home. Ethanol blending is one response to such a crisis. Diversifying fuel sources is a sensible policy. But the next phase of India’s ethanol strategy must ensure that energy security does not come at the expense of consumer choice. There is clear logic behind ethanol blending. It is produced domestically, burns cleaner than conventional petrol, and carries a naturally high-octane rating that improves fuel stability.

As a renewable alternative, ethanol can diversify India’s fuel basket while helping reduce the carbon footprint of the transport sector. Over the past decade, India’s ethanol programme has reduced crude imports, saved more than Rs 1.40 lakh crore in foreign exchange, and created new demand for crops such as sugarcane and maize. It has also encouraged investments in rural bio-refining infrastructure and bolstered the link between energy market and farm output. Integrating fuel policy with agricultural markets has helped address persistent sugar surpluses and moderate price swings, making ethanol a more pragmatic addition to India’s energy resilience strategy. For an economy exposed to volatile global oil markets, exploring alternative fuel sources makes economic sense. Domestic brewed biofuels can curb reliance on imported crude, provide a buffer against supply shocks, and create revenue streams for rural........

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