Why in News

• Union Minister Nitin Gadkari announced trials for isobutanol–diesel blending.

• This comes after ethanol–diesel blending trials failed.

• ARAI is testing a 10% isobutanol–diesel blend.

Background on Ethanol Blending

• Ethanol blending is a major biofuel policy in India.

• Success: 20% blending in petrol achieved ahead of schedule.

• Failure in diesel blending due to:

  • Corrosive nature of ethanol

  • Engine compatibility issues

• Positive farmer impact:

  • Farmers earned ₹42,000 crore+

  • Corn prices rose from ₹1,200 → ₹2,600–2,800 per quintal

Exploring Isobutanol as an Alternative

• Isobutanol: industrial alcohol, usually in paints & coatings.

• Current trials: 10% blend with diesel.

• Advantages over ethanol:

  • Better engine compatibility

  • Less corrosive

  • Can be used with CNG in tractors & agri-machinery

• Supports:

  • Import substitution

  • Energy security

  • Farmer incomes through alternative feedstocks

Policy Push for Farmers and Sugar Industry

• Government cleared 96% of cane payments; dues at record lows.

• Push for ethanol producers:

  • Boost domestic and export output

  • Adopt 2G & 3G ethanol (bamboo, agri residues)

  • Expand distilleries

Industry Concerns (ISMA)

• Demands raised:

  • Revise FRP of sugarcane in line with rising costs

  • Revise MSP of sugar (unchanged since 2019)

  • Raise sugar export quota by 2 MT for 2025–26

Growth in Sugar & Ethanol

• Sugarcane production ↑ 40% in last decade

• Sugar output ↑ 58%

• 2025 estimate: 34.9 MT sugar production (+20% YoY)

• Stronger integration needed between sugar sector & energy policy

Challenges

• Feedstock availability: Competing demand for sugarcane and corn may affect food security.

• Technology readiness: Isobutanol blending still at trial stage; large-scale adoption uncertain.

• Cost competitiveness: Production cost of isobutanol higher than fossil fuels.

• Infrastructure gaps: Lack of blending and distribution systems across India.

• Environmental concerns: Large-scale biofuel crop production may lead to water stress and land-use conflicts.

• Policy uncertainty: Frequent changes in sugar, ethanol, and fuel pricing discourage investment.

Way Forward

• R&D push: Accelerate trials and invest in domestic technology for isobutanol production.

• Diversified feedstocks: Encourage use of bamboo, crop residues, algae to reduce dependence on food crops.

• Stable policies: Long-term clarity in FRP, MSP, blending mandates, and export policies.

• Infrastructure creation: Expand blending facilities, storage, and supply chain networks.

• Farmer-centric incentives: Ensure fair pricing, timely payments, and promote crop diversification.

• Environmental safeguards: Adopt water-efficient crops and sustainable farming practices.

• Public–private partnerships: Attract private investment in biofuel innovation and production capacity.

Key Terms Explained

Isobutanol

• A type of alcohol (like ethanol, but with different chemical properties).

• Less corrosive and more stable than ethanol.

• Can be mixed with diesel without damaging engines.

• Also used in paints, coatings, and solvents.

Blending

• Mixing biofuels (like ethanol or isobutanol) with fossil fuels (petrol/diesel).

• Done to reduce pollution, lower import bills, and support renewable energy goals.

Ethanol Blending

• Policy where ethanol (from sugarcane, corn, etc.) is mixed with petrol or diesel.

• Common target: 20% ethanol in petrol (achieved ahead of schedule).

• Diesel blending failed due to engine damage.

ARAI (Automotive Research Association of India)

• Government research institute under the Ministry of Heavy Industries.

• Tests vehicles, fuels, and emission standards.

• Currently running trials for 10% isobutanol–diesel blending.

Fair and Remunerative Price (FRP)

• Minimum price sugar mills must pay farmers for sugarcane, fixed by the government.

• Ensures farmers get a fair return, even if market prices fluctuate.

Minimum Support Price (MSP)

• Price at which government buys crops from farmers, regardless of market conditions.

• For sugar, MSP ensures mills sell sugar at a price covering their costs.

Cane Dues

• Pending payments sugar mills owe to farmers for supplied sugarcane.

• Clearing cane dues quickly is important for farmer incomes and rural stability.

2G & 3G Ethanol (Second and Third Generation Ethanol)

• 2G Ethanol: Made from crop residues, bamboo, or non-food biomass (avoids food vs fuel issue).

• 3G Ethanol: Made from algae or advanced biotech processes.

• Both are more sustainable than 1G ethanol (from food crops like sugarcane or corn).

Export Quota (for sugar)

• Government fixes how much sugar can be exported in a season.

• Increasing quota lets mills sell more abroad, earn better prices, and clear farmer dues.

Biofuel Policy

• India’s roadmap to promote blending of biofuels with petrol/diesel.

• Aims to cut crude oil imports, reduce pollution, and support farmers.