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"Ethanol Fuel’s Dark Side in India Hidden Risks Every Driver and Citizen Should Know"

Gas station with yellow, green, and black fuel pumps in focus. Red and white background adds contrast. No people present.
enthanolfuel ,insidefounders

Ethanol fuel in India is promoted as an eco-friendly alternative, but its rapid adoption brings a series of serious downsides, particularly for vehicle owners, farmers, and food security.


Engine Damage & Vehicle Concerns

While newer cars after April 2023 are designed for E20 (20% ethanol, 80% petrol), India's rapid rollout has left millions of older vehicles vulnerable. Ethanol is more corrosive than petrol, leading to faster wear on pumps, injectors, fuel lines, and seals, causing frequent breakdowns, leaks, degraded gaskets, and expensive repair bills. Motorists have reported fuel efficiency drops of 6–8%, with recurring complaints of engine knocking and increased maintenance.


Impact on Food Security

Ethanol in India is mainly sourced from sugarcane, maize, and rice—all crucial food crops. Diverting such produce for fuel means less food available for people and livestock, pushing up prices. In 2024, India became a net importer of maize for the first time in decades because of ethanol production needs, which drove up poultry feed costs and contributed to inflation in the food sector. The government has even sanctioned rice, originally meant for subsidized distribution to the poor, to be converted into ethanol—raising ethical concerns in a country where hunger and malnutrition persist


Water Crisis from Crop Cultivation

Sugarcane, the primary ethanol feedstock, is extremely water-intensive and accounts for about 40% of ethanol production. This exacerbates groundwater depletion in states like Maharashtra and Uttar Pradesh, already suffering water stress. NITI Aayog estimates sugarcane and paddy use 70% of India's irrigation water supply, raising red flags for agricultural sustainability


Economic & Policy Risks

Despite government claims of cost savings on oil imports, the price of ethanol is now comparable or even higher than petrol—undermining the rationale for rollout. Automakers provide inconsistent advice, with many refusing to guarantee warranty coverage for older vehicles run on E20. The Supreme Court recently dismissed a challenge over lack of choice for ethanol-free fuel and demanded better transparency regarding fuel composition and compatibility. Meanwhile, some studies suggest insurance companies may reject claims for engine damage linked to ethanol.

Unintended Agricultural Shifts

The rush for ethanol has encouraged farmers to switch land away from oilseeds and pulses to maize or sugarcane, undermining India's push for edible oil self-sufficiency and narrowing crop diversity. Experts warn that continued crop diversion could result in widespread agricultural, economic, and ecological instability in the coming years.


Conclusion

Despite its green promise, India’s ethanol fuel programme hides a dark side—threatening vehicles, food supply, water resources, and rural livelihoods. The policy’s rapid implementation without robust safeguards has generated confusion, backlash, and increased risk for ordinary citizens and the nation’s agricultural system

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