The Economic Survey has highlighted potential issues with biofuel mandates and feedstock-specific price incentives. It warns that without regular adjustments, these policies could disrupt cropping patterns and affect food prices over time. Drawing from global experiences, the Survey suggests that sustained incentives might unintentionally favour certain crops, impacting agricultural diversity and food security.
India's ethanol blending programme, a crucial part of its energy security strategy, has shown significant benefits. It has reduced crude oil imports, cut foreign exchange outflows, lowered emissions, and increased farmer payments. By August 2025, the programme saved over Rs 1.44 lakh crore in foreign exchange and replaced about 245 lakh tonnes of crude oil.
