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Cornell University

Tata-Cornell Institute for Agriculture and Nutrition

Author: Payal Seth

A bus at a gas station

Sowing Trouble: The Beginnings of an Alcohol Problem?

On June 2, 2021, the Indian government announced a Production Linked Incentive (PLI) scheme for several key sectors of the economy. Under this scheme, the fuel companies will be required to sell gasoline containing up to 20 percent ethanol by 2023, with the view to reduce dependency on oil imports and lower carbon dioxide emissions in cities. (Ethanol adds extra oxygen to petrol which lowers the emission of harmful gases and is shown to significantly reduce air pollution.) This target implies that India will need 1,000 crore liters of ethanol against the nation’s current capacity of 684 crore liters.