Economy · 18 Aug 2026

ethanol blending E20 food-fuel trade-off

Consider the following statements:

  1. Ethanol produced from maize is procured at a price higher than that produced via the sugarcane route.
  2. E20 blending is estimated to reduce India's crude oil import bill by only 3-4%.
  3. Maize alone supplies more than half of India's total ethanol production, with grains together accounting for less than half.
  4. India currently meets around 40% of its domestic edible oil requirement through domestic production.
AOnly one
BOnly two
COnly three
DAll four
This question is based on: The Soybean Farmer Losing Twice to a Fuel Policy He's Never Mentioned In
Take this in full test mode → Instructions for 18 Aug 2026
About this question

Why in news

The Chief Economic Adviser's opinion piece addressed viral claims that E20 petrol damages engines - which he says the evidence does not support for most vehicles, barring older carburettor-based two-wheelers - while raising a larger question of whether pushing ethanol blending beyond E20 trades away food security gains for too small a crude-oil saving.

Why for UPSC

Ethanol blending questions often test only the headline E20/crude-bill figure; this question additionally probes the maize-versus-grains ethanol-share distinction, a finer detail that separates a careful reader of the data from one relying on the general narrative.

Prelims summary

E20 blending cuts India's crude oil bill by just 3-4%; maize (procured above the sugarcane rate) supplies about half of India's ethanol and grains nearly 67%, even as India meets only about 40% of its edible oil needs domestically.

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