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India’s Ethanol Blending Push: Impact on Vidarbha’s Sugarcane Farmers

India’s Ethanol Blending Push: Impact on Vidarbha’s Sugarcane Farmers
India’s Ethanol Blending Push: Impact on Vidarbha’s Sugarcane Farmers

Farmers tend to their crops with hope and uncertainty in the sun-scorched plains of Maharashtra’s Vidarbha region.


Among the fields of cotton and pulses, sugarcane stands tall, its green stalks swaying under the weight of a national policy that could reshape the lives of those who grow it.


This article explores how India’s push for ethanol blending in fuel affects sugarcane cultivation and processing units in Buldhana and Yavatmal districts, delving into the economic prospects and agricultural challenges that define this moment.


A National Drive for Ethanol


India’s Ethanol Blending Programme (EBP) targets a 20% blend of ethanol with petrol by 2025, a goal accelerated from its original 2030 timeline.


The policy aims to cut reliance on imported crude oil while reducing vehicle emissions. Ethanol, a biofuel primarily derived from sugarcane byproducts like molasses, juice, or syrup, lies at the heart of this initiative.

As the world’s second-largest sugar producer, India leverages its vast sugarcane output to fuel this ambition, with Maharashtra playing a pivotal role due to its significant cultivation.

In Vidarbha, a region known for its agricultural diversity, the policy translates into increased demand for sugarcane.



Though they are less dominant than western Maharashtra's sugar belt, Buldhana and Yavatmal contribute to the region’s sugarcane production.


The government has incentivised ethanol production by approving higher prices for ethanol sourced from sugarcane-based materials, aiming to benefit both farmers and distilleries. This creates a ripple effect, promising economic gains for those involved in cultivation and processing.

The policy’s impact extends beyond the fields. Sugar mills and distilleries, which process sugarcane into sugar, molasses, and now ethanol, stand to gain from expanded operations.


In Buldhana and Yavatmal, where such units exist, the prospect of scaling up ethanol production brings the potential for job creation and investment. For farmers, the policy offers a dual market. Sugarcane can be sold for sugar production or diverted to ethanol, providing an additional revenue stream.


This shift is particularly relevant in a region where agricultural incomes are often precarious, shaped by market fluctuations and environmental constraints.


Yet, the policy’s promise is not without complexity. The government has occasionally restricted the use of sugarcane juice and syrup for ethanol to prioritise sugar supply, especially during years of low yield.

Such decisions introduce uncertainty, affecting farmers’ planning and the operations of processing units. In Vidarbha, where agriculture is already a high-stakes endeavour, these fluctuations add another layer of unpredictability to an industry poised for growth.



The Weight of Water

Water Requirement in Ethanol Production from Sugarcane
Water Requirement in Ethanol Production from Sugarcane

Sugarcane is a thirsty crop, demanding substantial water to thrive. In Vidarbha, where rainfall is lower than in Maharashtra’s coastal regions, this poses a significant challenge.


Producing one litre of ethanol from sugarcane requires approximately 2,860 litres of water, a figure that underscores the crop’s intensive needs. For Buldhana and Yavatmal, where water scarcity is a persistent issue, expanding sugarcane cultivation to meet ethanol demands could strain already limited resources.


The region’s irrigation systems rely heavily on groundwater and seasonal rains, both of which are under pressure.


Studies indicate that 82% of India’s sugarcane is grown in areas with low rainfall, including parts of Vidarbha, despite recommendations to limit cultivation in such zones. This mismatch amplifies the risk of depleting water tables, affecting not only sugarcane but also other crops like cotton and pulses that farmers in these districts grow.

The competition for water could reshape agricultural priorities, forcing farmers to make difficult choices about what to plant.


Processing units face related challenges. Ethanol production requires water for both cultivation and distillation, adding to the region’s resource demands.



While sugar mills in Buldhana and Yavatmal have the infrastructure to produce ethanol, scaling up operations without addressing water constraints could lead to inefficiencies or environmental harm.


The policy’s push for ethanol thus walks a tightrope, balancing economic goals against the realities of Vidarbha’s ecology.


Farmers, too, bear the brunt of these constraints. Many in Buldhana and Yavatmal rely on borewells or canal irrigation, both of which are vulnerable to drought. The prospect of higher sugarcane demand may encourage more planting, but without adequate water management, yields could suffer, undermining the economic benefits the policy promises.

This tension between ambition and environment defines the ethanol push in Vidarbha, shaping the daily lives of those who work the land.


Farmers and the Market


For sugarcane farmers in Buldhana and Yavatmal, the ethanol blending policy brings both opportunity and uncertainty.


The increased demand for sugarcane could lead to better prices, especially if the government ensures fair remuneration through mechanisms like the Fair and Remunerative Price (FRP).


Higher incomes would provide relief in a region marked by agrarian distress, where debt and low returns have long plagued farmers.


However, the reality is less straightforward. Reports highlight ongoing issues with the FRP system, including delayed payments from sugar mills and dissatisfaction with price levels.

Farmers in Vidarbha, already grappling with economic pressures, may not see the full benefits of ethanol-driven demand if these systemic issues persist. The policy’s success hinges on whether it can deliver timely and equitable payments to those who grow the crop.


The labour market adds another dimension. In Yavatmal, seasonal migration for sugarcane harvesting is common, with workers travelling to fields across Maharashtra for income.



The ethanol policy could boost local employment by expanding cultivation and processing, reducing the need for such migration. New jobs in distilleries or expanded sugar mills could provide stable work, particularly for rural youth in Buldhana and Yavatmal.


Yet, these opportunities depend on the policy’s consistent implementation and the ability of processing units to scale up.


Policy shifts further complicate the picture. The government’s occasional bans on using sugarcane juice for ethanol, aimed at securing sugar supplies, disrupt the market for farmers. These restrictions, often introduced with little warning, make it harder to plan crops or invest in cultivation.


For processing units, such changes can halt ethanol production, affecting their viability. In a region where agriculture is already fraught with risk, this uncertainty weighs heavily on those who depend on sugarcane for their livelihood.

The fields of Buldhana and Yavatmal stretch toward the horizon, their green expanse a testament to the labour of farmers navigating a changing world.


India’s ethanol blending policy has set in motion a transformation, turning sugarcane into a cornerstone of national energy goals.


For these districts, the policy is a double-edged sword, offering economic prospects while testing the limits of water, land, and human effort.

As the nation races toward its 2025 target, the experiences of Vidarbha’s farmers and processors will shape the story of this ambitious endeavour, their work etched into every litre of ethanol that powers the country forward.



References




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