E20 blending program boosts Punjab farmers, eases burden on rice millers
The Amritsar Rice Millers Association highlights the economic benefits of the government's E20 ethanol-blended petrol initiative, which supports farmers and improves market demand.
The Indian government’s E20 initiative, which promotes 20 percent ethanol-blended petrol, is providing significant economic relief to the agricultural sector in Punjab. According to Rajinder Salwan, President of the Amritsar Rice Millers Association, the program is not only boosting farmers' incomes but also easing the operational burden on millers by creating a consistent market for surplus grain.
Speaking to reporters, Salwan emphasized that paddy serves as a primary "investment crop" for farmers in Punjab. Unlike wheat, which many farmers retain for personal consumption, nearly the entire paddy harvest is sold in the market. The revenue generated from these sales allows farmers to fund essential investments, including the purchase of tractors and the construction of new homes.
Industry experts note that paddy and broken rice are now finding sustainable demand through the ethanol production route. The central government’s strategy is aimed at reducing fuel import dependency while providing a stable market for surplus food grains. By diverting excess paddy toward ethanol production, the initiative ensures that farmers receive timely payments and enjoy a more reliable sales environment for their produce.
Salwan also highlighted the cost-effectiveness of paddy cultivation compared to other crops. For instance, approximately 5 kg of seed is required to sow one acre of land for paddy, whereas 50 kg of seed is needed for wheat. This lower input cost, coupled with the guaranteed demand created by the government's ethanol policy, has made rice cultivation a more attractive and manageable venture for the state's farmers.
Despite these benefits, the policy has become a point of political contention. The Aam Aadmi Party (AAP), led by Arvind Kejriwal, has been protesting against the E20 mandate. Their demands include ensuring that consumers have the option to choose between E20 and pure petrol at fuel stations, and insisting that E20 should be priced lower than regular gasoline. Nevertheless, representatives from the rice milling industry continue to defend the program, citing its positive impact on the agricultural economy and the livelihoods of Punjab's farming community.