Finshots Daily Should India turn surplus rice into ethanol?
Jul 2, 2025
India is converting its rice surplus into ethanol to cut down on foreign oil dependence. This innovative strategy raises questions about food security and long-term sustainability. Listeners explore the potential benefits and challenges of this approach, debating whether transforming food into fuel is a wise trade-off. It's a deep dive into the future of energy and agriculture!
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Rice to Ethanol for Energy
- India is diverting over 5 million metric tons of surplus rice for ethanol production to reduce foreign oil dependency.
- Ethanol blending in petrol is nearing 20%, supporting energy security amid record rice harvests and stockpiles.
Food vs Fuel Trade-off
- Using food crops like rice for ethanol fuel raises serious concerns in a country with widespread hunger.
- Diverting food for fuel risks increasing staple food prices, impacting poorer households the most.
2023 Rice Price Crisis Anecdote
- In 2023, rising rice prices forced the government to pause rice ethanol diversion and ban broken rice exports.
- The decision reflects how food prices directly influence ethanol policy and vice versa.