✎ EBP balances energy security, food safety, and farmer welfare by utilizing surplus and waste grains for ethanol.
Relevance for Banking, SSC & RBI Grade B exams: Security
India’s Ethanol Blended Petrol (EBP) programme stands as a strategic initiative balancing food security, farmer welfare, and energy security, particularly relevant for banking, SSC, and RBI Grade B aspirants due to its multi-dimensional economic impact. The programme reduces India’s reliance on imported crude oil—currently meeting 88% of domestic demand—by blending ethanol with petrol, thereby cutting the import bill and saving foreign exchange. For instance, during global oil price spikes, E20 petrol (20% ethanol blend) prevented petrol prices from reaching ₹125 per litre in Delhi, keeping it at ₹94.77 per litre, thus saving consumers nearly ₹30 per litre. This fiscal prudence directly aligns with macroeconomic stability, a key focus area in RBI Grade B examinations, where candidates are tested on monetary policy, inflation control, and fiscal management. Additionally, the programme’s success in substituting 316 lakh metric tonnes of crude oil and generating ₹1.97 lakh crore in foreign exchange savings underscores its role in strengthening India’s balance of payments—a critical topic for banking exams like IBPS and SBI.
For SSC aspirants, the EBP programme highlights socio-economic governance and sustainable development, as it supports farmers by providing a stable market for surplus agricultural produce, including damaged grains and agricultural waste, without compromising food security. The government ensures that food grains earmarked for Public Distribution System (PDS) and welfare schemes are prioritized, with only certified surplus stock used for ethanol production. This dual focus on energy transition and food security reflects the government’s commitment to inclusive growth, a theme often tested in SSC exams through questions on government schemes and policies. The programme’s contribution to reducing CO₂ emissions by 950 lakh metric tonnes further aligns with environmental sustainability goals, a growing area of interest in competitive exams. Thus, understanding the EBP programme equips aspirants with insights into India’s energy transition, fiscal responsibility, and inclusive development—key pillars for success in Banking, SSC, and RBI Grade B examinations.
Source: PIB (Press Information Bureau)
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