[Marxistindia] On Ethanol Blending Policy

[news from the cpi(m)]

August 7, 2026

 

Press Statement

 

 

The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:

 

On Ethanol Blending Policy

 

The Polit Bureau of the Communist Party of India (Marxist) expresses its
serious concern over the wide-ranging impact of the Ethanol Blending Policy.


 

The recent letter by the Society of Indian Automobile Manufacturers (SIAM)
to the Union Petroleum Ministry, flagging concerns over damage caused by
ethanol-blended fuel, has exposed the serious risks associated with the
policy. The subsequent withdrawal of the letter, obviously under pressure,
does not negate the concerns raised therein.

 

When the Ethanol Blending Policy was rolled out, it was assured that Ethanol
or any EBP would be less expensive than pure petrol. But E20 is sold at
about the same price as petrol before E20 was introduced, despite it giving
less mileage and additional wear and tear.Consumers are left with no choice
but to use blended fuel in the absence of any other alternative, even while
there are questions over vehicle performance and maintenance. 

 

The policy has seen diversion of food crops for fuel production in a country
where hunger and malnutrition continue to plague sections of the populace.
To boost ethanol production maize is also being imported. While benefitting
corporate houses and large sugar mills the policy leads to a distortion in
cropping patterns. Besides, water-intensive cultivation depletes scarce
groundwater resources.

 

The policy exposes the priorities of the Modi government of placing
corporate profits above that of its citizens. A policy that hits our food
security, harms farmers' interests, consumer rights and environmental
sustainability cannot be allowed to continue. While dependence on fossil
fuels needs to be reduced, these cannot be at the cost of food security,
environmental concerns and addressing consumers concerns.

 

The Polit Bureau of the CPI(M) demands that the choice of fuel blended or
otherwise be left to the consumer with both being made available at all
outlets, with Ethanol blends being priced proportionately lower than petrol,
compensating for lower mileage and wear and tear. Ethanol blending higher
than 20 per cent should be ruled out. The CPI(M) also warns against import
of GM corn which the US is trying to push. There is every danger that this
corn can be diverted for human consumption as also contaminating our crops.

 

The CPI(M) hopes that the government would listen to the concerns expressed
by various sections of the people and change its policy. Otherwise it would
be faced with a rising tide of peoples protest against the policy.

 

 

(Muralidharan)

For CPI(M) Central Committee Office

 

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