✎ EBP balances energy security, farmer welfare, and food security by converting surplus/unusable grains into ethanol without compromising PDS commitments.
Relevance for Banking, SSC & RBI Grade B exams: Security
India’s Ethanol Blended Petrol (EBP) programme is a strategic initiative that harmonises food security, farmer welfare and energy security, ensuring that India’s energy needs do not come at the cost of its most vulnerable citizens. The programme prioritises the use of surplus, damaged or unfit grains—such as broken rice or spoiled stocks—that would otherwise go to waste—after fulfilling all obligations under the Public Distribution System (PDS) and the National Food Security Act (NFSA). This approach not only prevents food grains meant for the poor from being diverted but also converts agricultural waste into a valuable resource, boosting farm incomes and reducing the country’s reliance on imported crude oil. By blending ethanol with petrol, the programme acts as a buffer against global oil price volatility, stabilising fuel costs for consumers. For instance, during periods of high international oil prices, the presence of 20% ethanol in petrol helped consumers save around ₹30 per litre in Delhi, demonstrating its role as a price stabiliser rather than a mere cost-cutting measure.
For aspirants preparing for Banking, SSC and RBI Grade B exams, understanding the EBP programme is crucial as it intersects with multiple economic and policy domains tested in these examinations. The programme’s success in reducing crude oil imports by over 316 lakh metric tonnes and saving ₹1.97 lakh crore in foreign exchange highlights its macroeconomic significance—directly relevant to questions on fiscal policy, inflation control and balance of payments in banking exams. Additionally, the focus on supporting farmers through stable ethanol procurement prices ties into rural development and agricultural policies, often featured in SSC and RBI Grade B syllabi. The programme also underscores India’s commitment to climate goals, having reduced CO₂ emissions by 950 lakh metric tonnes, a point that aligns with environmental sustainability topics frequently examined in competitive tests.
Source: PIB (Press Information Bureau)
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