- A new crisis due to E20 petrol?
- Will increasing consumption of grain for fuel make the plate of food more expensive?
- What exactly is the situation?
E20 Petrol Fuel vs Food Crisis : When there is anger in the country due to E 20 petrol, now this is a new crisis facing the country.” Petrol (Fuel vs Food Crisis)
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For this reason, the government's new ethanol procurement rules are seen as an attempt to strike a balance between energy demand and food inflation. Let's see what impact this decision can have on your pocket and plate.
What is the government's new ethanol policy?
Oil companies have invited tenders to procure approximately 1,100 crore liters of ethanol for the supply year 2026-27. But, this new tender excludes sugarcane juice, syrup and ethanol produced from B-heavy crops. The main objective of this decision is to check the trend of sugar towards ethanol production and to control food inflation.
Is the production of ethanol from corn more expensive?
A ban on some alternatives to sugarcane-based ethanol is likely to increase procurement costs for oil companies. As a result, oil companies may have to rely more on other alternatives, such as corn and Si-heavy crops, to meet their ethanol needs.
According to the data, the purchase price of ethanol made from maize is ₹68.86 per liter while the price of ethanol made from B-heavy sorghum is ₹60.73 per litre. This means that ethanol produced from corn is approximately 13.4% more expensive than ethanol produced from B-heavy crops. This may increase the cost of oil companies.
Will eggs and chicken become more expensive?
Increased use of corn for ethanol production may affect the costs of the poultry industry. Maize is an important ingredient in chicken feed. Approximately 55-60% of the domestic maize produced in the country is consumed by the poultry industry.
If more corn is used for ethanol production, feed costs may increase. This is likely to affect the prices of eggs and chicken. However, the rate of price hike will depend on maize availability and market conditions.
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