Ethanol’s race: Fast, but fair?

Earlier this year, we crossed 18% ethanol blending in petrol, within striking distance of the 20% target set for 2025. Originally, this milestone was meant for 2030. That extra half-decade could have been used to strengthen feedstock diversity, prepare infrastructure, align automakers and insurers, and inform consumers. Instead, the deadline was pulled forward, and the pace of change has outstripped the pace of readiness.

It’s a policy achievement worth recognising. But as we’ve seen with other “big wins” in sustainability, what looks like a net gain on paper can create new pressures on people and the planet if we don’t plan for the ripple effects.

Water: the invisible ingredient in green fuel

In my previous article, Two Realities, One Thirst, I wrote about the stark divide in India’s access to water, how women in rural Maharashtra walk kilometres for a bucket while urban roads are sprayed down to keep dust away. That divide becomes relevant here, because most of India’s ethanol still comes from sugarcane.

Sugarcane is a water-hungry crop: it takes roughly 2,000 litres of water to produce 1 kg of sugar. Expanding ethanol production without diversifying into less water-intensive crops like maize or using crop residues could deepen groundwater stress in already drought-prone regions. Maharashtra, Uttar Pradesh, and Karnataka, major sugarcane producers, are also among the states facing severe groundwater depletion (Central Ground Water Board, 2023).

A cleaner fuel in the city could mean drier wells in the villages that grow it.

Farmers: opportunity with a price tag

The ethanol push offers farmers a ready market, potentially better prices, and insulation from some of the volatility of food commodity markets. But the shift from food crops to fuel crops is a calculated gamble. If sugar or maize prices fall, or if rainfall is erratic, farmers bear the brunt.

We’ve seen this pattern before in other “cash crop” booms; initial gains followed by years of vulnerability when water shortages or market fluctuations hit. Without crop insurance designed for biofuel-linked risks and without investment in irrigation efficiency, the promise of ethanol income could be uneven.

Consumers: costs at the pump and beyond

For buyers of new E20-ready vehicles, the transition will be smooth. But millions of cars and bikes on Indian roads are still designed for E10. Using higher blends can cause gradual wear on rubber seals and certain engine components.

This matters because warranties and insurance claims often hinge on the phrase “manufacturer-recommended fuel.” And as many of us already know, private insurers don’t need much encouragement to deny a claim, the IRDAI’s 2023 consumer grievance report recorded over 3 lakh complaints, with “claim repudiation” as one of the top reasons. Introducing a new technicality like fuel compatibility could make those disputes more frequent.

Mileage is another hidden factor. Ethanol has lower energy density than petrol, and tests suggest up to a 6% drop in efficiency for non-optimised engines. That’s not just a commuter’s annoyance, it adds to running costs for gig workers, delivery drivers, and transport operators whose margins are already thin.

The sustainability test

E20 has strong climate credentials, it reduces tailpipe emissions and cuts fossil fuel use. But sustainability is never just about emissions; it’s about equity and resilience.

If ethanol production drains aquifers in water-scarce states, if farmers face price shocks, if insurance disputes rise, or if only wealthier consumers can upgrade to compatible vehicles, then the transition risks reproducing the very inequalities sustainability is meant to address.

How to make the green fair

This shift doesn’t have to widen divides. Some measures are straightforward:

• Publicly accessible lists of E20-compatible vehicles.

• Clear labelling at every pump to avoid accidental misfuelling.

• Agreements between automakers and insurers to cover BIS-approved E20 use.

• Scaling alternative feedstocks that don’t depend on high water inputs.

And we can’t ignore the speed versus readiness gap. The original E20 target year was 2030, later moved to 2025. That extra five years could have allowed time to diversify feedstocks, align warranty and insurance terms, and prepare consumers with clear guidance. By accelerating the rollout, we’ve met the target sooner but without fully addressing these gaps, making it even more important to build fairness safeguards now.

Because if a greener fuel leaves rural wells emptier, farmers more vulnerable, and consumers caught in fine print, then the policy has solved one problem while quietly planting others.

Closing reflection:

The ethanol story is about more than fuel chemistry. It’s about how we balance climate action with water justice, farmers’ security, and consumer rights. Speed has helped us meet targets early, but fairness will decide whether the benefits last. The tank may be cleaner, but the real measure of progress is whether the benefits flow as evenly as the fuel itself.