Congress leader Jairam Ramesh has called for an immediate overhaul of the government's E20 blending policy, citing rising food costs and vehicle compatibility issues.
- Congress demands an immediate review of the central government's E20 fuel policy.
- Jairam Ramesh alleges diversion of foodgrains to ethanol is driving food inflation.
- Vehicle owners face concerns regarding mileage and engine compatibility.
- Demand for non-ethanol petrol alternatives has been raised.
The Indian National Congress on Friday demanded an immediate and comprehensive review of the Centre's E20 policy. The opposition party is calling for the provision of non-ethanol petrol options, arguing that the current mandate is forcing consumers to bear the brunt of both rising food costs and increased transportation expenses.
In a scathing critique, Congress communications chief Jairam Ramesh stated that the diversion of sugarcane and essential foodgrains toward ethanol production is a primary driver of soaring food prices. He further highlighted that vehicles not specifically engineered for 20% ethanol blending are suffering from reduced mileage and potential long-term engine compatibility issues.
The Economic Impact: Kitchen vs. Fuel Tank
The Congress party's assertions are backed by significant price fluctuations in essential commodities. According to figures cited by Ramesh, the diversion of approximately 2.5 million tonnes of sugarcane has had a direct impact on the market. Sugar prices have surged from ₹48 to ₹67 per kg, while jaggery prices have climbed from ₹50 to ₹65 per kg over the last three months.
"A fuel policy under which both the vehicle and the kitchen become expensive cannot be acceptable to the country."
BozokMedia analysis shows that this policy creates a complex tension between environmental goals and economic stability. While ethanol blending aims to reduce crude oil imports, the unintended consequence of diverting agricultural surplus can trigger food inflation, disproportionately affecting low-income households.
Why This Matters
This debate is central to India's energy transition strategy. As the government pushes for cleaner mobility through biofuels, it must address the technical limitations of the existing vehicle fleet and the socio-economic implications of shifting agricultural resources. The lack of price relief at the pump, despite lower international crude prices, remains a major point of contention for the opposition.
| Commodity | Previous Price (Approx) | Current Price (Approx) |
|---|---|---|
| Sugar (per kg) | ₹48 | ₹67 |
| Jaggery (per kg) | ₹50 | ₹65 |
| Rice/Maize Flour | Base Price | 11% - 16% Increase |
Furthermore, the Congress Working Committee has raised alarms regarding the environmental impact and the limited choices available to consumers. Rahul Gandhi has also consistently pointed toward alleged corruption in the implementation of the E20 rollout, adding a layer of political scrutiny to the technical policy debate.
Frequently Asked Questions
1. What is the E20 policy?
It is the government mandate to blend 20% ethanol with petrol to reduce fossil fuel dependence.
2. Why is Congress protesting?
They argue it causes food inflation due to crop diversion and harms older vehicle engines.
