The National Federation of Cooperative Sugar Factories (NFCSF) has extended strong support to the Ministry of Petroleum and Natural Gas (MoPNG) following its recent clarification on the safety and reliability of 20% ethanol-blended petrol (E20). The Ministry issued the statement to counter concerns raised in some quarters about the supposed adverse impact of E20 on vehicle performance, particularly older vehicles. These claims, according to MoPNG and supported by NFCSF, are not only unfounded but run contrary to established scientific evidence.
The clarification draws on extensive testing and research carried out both domestically and internationally. Reputable institutions such as the Automotive Research Association of India (ARAI), Indian Institute of Petroleum (IIP), and Indian Oil Corporation’s R&D division have confirmed that E20 is mechanically and materially compatible with a wide variety of vehicles, including those not specifically designed for ethanol-blended fuel. The studies concluded that E20 poses no significant risk to engine durability or fuel efficiency, effectively dispelling lingering doubts.
NFCSF, which represents the cooperative sugar sector, welcomed the Ministry’s clarification as timely and necessary, particularly given the far-reaching implications of the Ethanol Blending Programme (EBP) for India’s economy, environment, and rural livelihoods. Over the past decade, the EBP has emerged as a transformational initiative, delivering broad-based gains across multiple sectors.
From an environmental perspective, the programme has been instrumental in helping India reduce its carbon footprint. Ethanol blending has already resulted in a reduction of over 700 lakh tonnes of carbon dioxide emissions. This aligns closely with India’s commitment to the Paris Agreement and its long-term climate goals. The use of biofuels like ethanol provides a sustainable path toward cleaner energy and pollution mitigation in urban centers.
The programme also marks a major step forward in securing the country’s energy future. With crude oil imports historically accounting for a large share of India’s foreign exchange outflow, the introduction of E20 has helped curtail this dependence significantly. According to official estimates, the shift to ethanol-blended petrol has saved India more than Rs 1.2 lakh crore in foreign exchange since 2014–15.
Perhaps the most profound impact of the EBP has been felt in India’s rural economy, particularly among sugarcane farmers. Ethanol production has facilitated timely payments to growers, amounting to over Rs 1.04 lakh crore, boosting rural incomes and financial stability. For a sector often plagued by payment delays and fluctuating sugar prices, ethanol has emerged as a reliable economic buffer. It has also reduced the sugar industry’s reliance on government subsidies, making it more financially sustainable in the long run.
The NFCSF highlighted that ethanol production has not only supported farmer welfare but also spurred a rural bio-economy, fostering new opportunities in energy production, transport, and ancillary services. Ethanol, as a renewable fuel derived from locally grown biomass, fits squarely into India’s strategy for energy self-reliance and economic inclusivity.
The cooperative sugar sector, which is integral to ethanol production in India, has reaffirmed its commitment to the national ethanol roadmap. NFCSF emphasized that it will continue to expand production capacity to meet the growing demand for E20 and beyond. This commitment is part of a larger push to integrate cooperative institutions into the national mission of clean energy transition and sustainable development.
As the debate around alternative fuels continues to evolve, NFCSF’s endorsement of the Ministry’s stance sends a clear message: ethanol is not a compromise but a scientifically supported, economically sensible, and environmentally responsible choice. With the cooperative sector backing the ethanol vision, India’s journey toward a greener and more self-reliant energy future appears well on track.
