Archive · 22 Jul 2026
Beeda Mastan Rao Urges Centre to Retain Regional Ethanol Policy
Beeda Mastan Rao Yadav, a member of the Rajya Sabha, spoke in the parliament about the ethanol industry.
He praised India's success in blending 20% ethanol with petrol, which helps the country's energy security and reduces pollution.
However, he warned that a new plan to buy ethanol from all over India could hurt ethanol factories in southern states like Andhra Pradesh.
This could mean less money for farmers, higher costs for transporting ethanol, and financial problems for the factories.
He asked the government to keep the current system of buying ethanol from specific regions, ensure that ethanol factories in Andhra Pradesh are given priority, and make sure that old cars can use the new E20 fuel.
He also wants the government to buy ethanol more regularly and allow factories to sell extra ethanol to other industries.
Beeda Mastan Rao Yadav urged the Centre to retain the regional ethanol allocation policy to protect the ethanol industry in southern states.
India achieved the 20% ethanol blending (E20) target, enhancing energy security and reducing crude oil imports and carbon emissions.
A pan-India ethanol allocation policy could adversely affect efficient ethanol units in southern states, impacting farmers and rural economies.
Several distilleries are facing financial stress as OMCs are not procuring their full ethanol production.
Mastan Rao urged the Centre to restore quarterly ethanol procurement tenders and allow surplus ethanol to be sold to other industries.
- Who
- Beeda Mastan Rao Yadav, Rajya Sabha member
- What
- Urged the Centre to retain the regional ethanol allocation policy and address issues faced by the ethanol industry.
- When
- Wednesday (specific date not mentioned)
- Where
- Rajya Sabha, India
- Why
- To protect the ethanol industry, particularly in Andhra Pradesh and other southern states, and safeguard consumer interests under the EBP programme.
Proponents of Pan-India Ethanol Policy
Supporters of Regional Ethanol Allocation
Ethanol Allocation Policy
Proponents of Pan-India Ethanol Policy
A pan-India ethanol allocation policy would standardize ethanol procurement across the country, potentially reducing regional disparities and ensuring a uniform supply.
Supporters of Regional Ethanol Allocation
The existing region-based ethanol allocation policy supports local economies, ensures timely procurement, and reduces transportation costs, benefiting farmers and rural economies in southern states.
- Ethanol Blended Petrol (EBP) Programme
- A government initiative to blend ethanol with petrol to enhance energy security, reduce crude oil imports, and lower carbon emissions.
- E20 Target
- India's achievement of blending 20% ethanol with petrol.
- Ethanol Procurement Tenders
- Quarterly tenders issued by oil marketing companies (OMCs) for the procurement of ethanol.
- Financial Stress on Distilleries
- Several distilleries are facing financial difficulties due to OMCs not procuring their full ethanol production.
- Interest Liabilities
- New ethanol units are facing interest liabilities of ₹2 crore to ₹3 crore per month due to non-participation in procurement tenders.