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Farmer organisations in Punjab have backed the Centre's E20 ethanol-blended petrol policy, saying it has improved incomes for maize and sugarcane growers.
Even as the Punjab Vidhan Sabha passed a resolution urging the Centre to review and suspend the mandatory implementation of E20 petrol for vehicles that are not designed or certified to run on fuel, several farmer organisations in the state have come out in support of the ethanol-blended petrol policy, arguing that it has significantly improved returns for maize and sugarcane growers.
A day before the Assembly resolution was passed, farmer bodies under Kisan Bachao Morcha and Doaba Kisan Union, Punjab, held a meeting in Chandigarh backing the E20 policy and opposing what they described as the political campaign against ethanol-blended petrol.
Kirpal Singh Nathuwala, president of Kisan Bachao Morcha, a constituent of the Samyukta Kisan Morcha (SKM), said, “Farmers can get better rates of the crops but yes, government needs to do proper research and address the concerns of consumers and at the same time, the opposition shouldn’t keep on opposing the use of E20 petrol for the sake of protesting but rather should talk to farmers and listen to their concerns. In Punjab, a Vidhan Sabha resolution against E20 petrol has been passed but the legislators never discussed the issue with farmers before passing this resolution.”
Kuldeep Singh Bazidpur, president of Doaba Kisan Union, said, “Punjab’s farmers are directly benefiting from the E20 policy. The increased production of ethanol has boosted the demand for crops such as maize and sugarcane, enabling farmers to receive better and more stable prices. If the E20 policy is weakened or withdrawn, Punjab’s farmers—particularly maize growers—will suffer the most.”
Nathuwala said, “Under the Ethanol Blended Petrol (EBP) programme, farmers have received payments exceeding Rs 1.66 lakh crore since the 2014-15 ethanol supply year countrywide. During the 2024-25 ethanol supply year alone, the achievement of 20% ethanol blending generated an additional income of nearly Rs 42,000 crore for farmers countrywide.”
According to Raja Singh, general secretary of Kisan Bachao Morcha, opposing E20 amounts to opposing the economic empowerment of farmers.
The farmer leaders questioned why governments speak of increasing farmers’ incomes while opposing a policy that, according to them, has created a stable market for agricultural produce. They argued that political considerations should not override farmers’ interests.
However, farmer organisations also acknowledged that consumer concerns regarding vehicle compatibility cannot be ignored.
Sarwan Singh Pandher, coordinator of Kisan Mazdoor Morcha (KMM), said, “If I think about farmers’ perspective, ethanol production should continue as it uses sugarcane and maize for its production but if I talk about the vehicles in which E20 is being used, consumer’s concern also needs to be addressed. Government must find out ways of how to resolve the issue of old vehicles which are using E20 petrol as it is not advisable to discard the old vehicles and buy new ones with E20-compatible engines. At the same time, government must research where this ethanol can be used other than vehicles.”
Punjab BJP media co-incharge Pritpal Singh Baliawal also questioned the AAP government’s stand. “The government has thousands of petrol vehicles in its official fleet manufactured by companies such as Mahindra Auto, Toyota Kirloskar Motor, Maruti Suzuki and others. My question is to AAP supremo Arvind Kejriwal, if the Punjab government has concerns over E20 compatibility, kindly make the data public: How many petrol vehicles in the Punjab Government fleet have been taken off the road due to E20 fuel? Let the facts speak.”
Meanwhile, Kejriwal, in a post on X, said, “What is the Modi government’s plan? It appears that the government intends to increase ethanol blending in petrol to more than 50%. It is just waiting for the current situation to calm down before moving ahead.”
Meanwhile, Gulzar Singh Sanghera, principal scientist (sugarcane) and Director, Regional Research Station-cum-Krishi Vigyan Kendra, Kapurthala, said Punjab has significant potential to expand ethanol production through sugarcane and maize cultivation, provided it is backed by a well-planned diversification policy. “Punjab has a great scope for ethanol production from sugarcane and maize. However, at present, the area under sugarcane cultivation is only around one lakh hectares and the crop is primarily used for sugar production. With proper planning by the state government and policy support from the Centre, diversification towards sugarcane can be promoted for ethanol production. States such as Uttar Pradesh, Maharashtra and Gujarat have a much larger area under sugarcane and are already producing ethanol on a large scale. This can certainly benefit farmers by ensuring better prices and assured procurement of their produce. However, farmers’ interests must also be protected in the long run so that there is a sustained commitment from industries to purchase the crop,” he said.
Scientists from the maize department said that although farmers received better prices for maize this year, the real test would be whether remunerative prices continue in the coming years.
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