India’s ambitious ethanol blending program, once hailed as a climate-friendly innovation and a model for other nations, is now at the center of heated political debate and public scrutiny. As the world’s most populous country races ahead with its biofuel targets, the consequences—intended and otherwise—are coming into sharp focus, especially in the southern state of Karnataka, where farmers, politicians, and consumers are all feeling the impact.
Earlier this year, the Indian government announced it had achieved its goal of mixing 20% ethanol with gasoline a full five years ahead of schedule, according to reporting by the Associated Press. This achievement places India alongside global leaders like Brazil, Japan, and Italy, who are all part of the Belem 4x initiative. This international agreement, discussed at the COP30 climate summit on November 8, 2025, aims to quadruple the use of sustainable fuels worldwide by 2035. COP30 organizers confirmed that 19 countries have now pledged support for this ambitious goal.
Brazil’s Mauricio Lyrio, secretary for climate, energy and environment, captured the optimistic mood at the summit: “Commitments like this gain traction over time. Therefore, 19 endorsements so far are an excellent result. And the variety, above all, is a testament to the fact that we are on the right track and that the cause resonates throughout the world.”
But as India celebrates its early progress, the realities on the ground tell a more complicated story. Most fuel pumps in the country now sell either a 20% ethanol blend—known as E20—or unblended gasoline, which is almost twice as expensive. Lower blends like E5 and E10 are being phased out. The government touts the environmental benefits, claiming the blending program has already cut carbon emissions by 74 billion kilograms (163 billion pounds)—equivalent to planting 300 million trees—and saved over $12 billion in oil imports over the last decade.
Yet, for many Indian drivers, the shift has come at a cost. Vijay Ramakrishnan, a businessman from Chennai who commutes over 100 kilometers daily, shared his frustration: “I think it’s good for the environment. But I’ve noticed a drop in mileage in my vehicle in recent months. Given how expensive fuel already is, this further drop is only adding to my costs.”
Automotive influencer Amit Khare echoed these concerns, noting that many of his YouTube followers have reported a significant drop in mileage with E20. Some owners of older cars, he said, are experiencing engine trouble. “E5 is the best fuel, E10 is manageable, but E20 has given a lot of trouble,” Khare reported.
Farmers, too, are grappling with the ripple effects of the ethanol push. In Punjab, farmer Ramandeep Mann described how many increased their corn acreage last year, hoping to profit from ethanol demand, only to see prices plummet after the government allocated large amounts of rice to ethanol production instead. Meanwhile, prices for sugarcane—traditionally the main source of Indian ethanol—have also dropped. Mann acknowledged the importance of tackling climate change but insisted that “the government should put farmers and their prices ahead of ethanol mandates.”
Ramya Natarajan of the Bengaluru-based Center for Study of Science, Technology and Policy explained the dilemma: “With the push for E20 blends or even more, a lot more area has to be cultivated which in turn means it’ll be replacing other crops.” She added that while ethanol can be good for engines designed for it, it does reduce mileage for others.
Experts warn that the environmental benefits of biofuels depend heavily on how they are produced. When ethanol is made from waste or inedible vegetation and processed in facilities powered by clean energy, the impact is minimal. But when food crops are grown specifically for biofuel, the carbon footprint can actually increase due to the fertilizer and fuel required for cultivation. According to Purva Jain, an energy specialist at the Institute for Energy Economics and Financial Analysis, “A faster transition to infrastructure for electric vehicles might be better.” Her organization’s 2022 study found that installing solar power for EV charging is a much more efficient use of land than growing crops for biofuel.
Yet, for India’s ethanol producers, the stakes are high. CK Jain, president of the Grain Ethanol Manufacturers Association, argued that the industry needs higher blending mandates to survive. “We need to have higher blending as soon as possible, otherwise the industry will go into deep financial trouble,” he said.
In the midst of these economic and environmental debates, Karnataka has emerged as a flashpoint for political confrontation. On November 8, 2025, a public dispute erupted between Chief Minister Siddaramaiah and Union Minister Prahlad Joshi over the state’s ethanol allocation for 2024–25. Siddaramaiah accused Joshi of “turning falsehood into his family deity” by misrepresenting the figures: “Karnataka’s ethanol allocation for 2024–25 is 47 crore litres, not 116.3 crore litres as claimed by Joshi. These figures were presented by Joshi himself in the Lok Sabha on August 6, 2025.”
The Chief Minister further charged that Karnataka has been consistently shortchanged by the central government. Over four financial years (2021–22 to 2024–25), Karnataka’s distilleries produced 879 crore litres of ethanol, but only 171 crore litres were procured by oil marketing companies. “This is a blatant injustice to Karnataka’s sugarcane farmers,” Siddaramaiah said, contrasting it with Gujarat, where 31 crore litres were purchased out of a production capacity of just 40 crore litres. He called on Joshi to apologize and urged the Prime Minister to correct what he termed a “grave injustice.”
The opposition was quick to respond. Leader of Opposition R. Ashoka accused the Congress-led state government of “toying with the lives of sugarcane growers.” He demanded an immediate subsidy of ₹500 per tonne and a fair price for sugarcane, alleging that the government had failed to mediate between sugar factories and farmers in time and was now “pretending to hold talks for publicity.” Ashoka also charged Siddaramaiah with hiding the state’s substantial revenue from sugar and its by-products while blaming the Centre for political gain.
With sugarcane protests intensifying across north Karnataka, the ethanol debate has added fresh fuel to the ongoing Congress–BJP rivalry. The allocation issue has laid bare the complex, often conflicting interests at play: national climate goals, local livelihoods, the economics of agriculture, and the realities of consumer choice.
As India’s ethanol blending program continues to evolve, some experts advocate for a middle ground. Natarajan of CSTEP suggested a 10% blend as a “win-win” solution, allowing for the use of existing crops without putting excessive pressure on increased cultivation. Khare, the automotive influencer, agreed: “The government can bring E20 or even up to E85 programs on top of that, that’s completely fine. But consumers need to be given the option.”
The debate over ethanol is far from settled. For now, it serves as a powerful reminder that even the most well-intentioned climate solutions can spark controversy—and that balancing environmental goals with economic realities will require both political will and a willingness to listen to those most affected.
