Ethanol production draining India’s water?:Experts clash over blending program

A recent study regarding usage of water in ethanol production in India has led to debate whether the government of India’s ambitious ‘Ethanol Petrol Blending’ program would actually lead to deepening of the country’s water crisis. The study made by one of India’s leading media house states that to produce one litre of ethanol through rice, manufacturers use approximately 10,790 litres of water. Raising objections to the findings of this study, ethanol producer associations refuted this claim and stated that only 3-5 litres of water is used in production of as much ethanol. Calling ethanol a water guzzler is simply incorrect. The 10,000-litre figure is a misinterpretation that includes rainfall, not actual industrial usage. Today’s ethanol plants are highly efficient and continue to improve their water performance. -C.K. Jain, President, GEMA to ChiniMandi Anyways, even if 3-5 litres of water is being used in 1-litre ethanol production, considering the grave condition of the depleting water level in the country’s reservoirs, is this still not a threat to the supply of drinking water in the future? The government of India faces a daunting task to balance a delicate act between its ambitious ethanol-petrol blending program and the deepening water crisis. While the country has successfully hit major milestones in ethanol blending, the falling water levels in key reservoirs are raising alarms for the government. The water crisis – How deep is it? India is facing a significant water shortage. According to the news daily, Times of India’, the World Bank defines water scarcity as a situation where annual per capita water availability drops below 1,000 cubic metres. India’s per capita water availability stood at 1,486 cubic metres in 2021. According to a report by the news daily, the government estimates suggest this could fall further to 1,140 cubic metres by 2050, pushing large parts of the country. Citing NITI Aayog, the report states that 21 major Indian cities, including Delhi, Bengaluru and Chennai, face the risk of depleting their ground water resources. India’s ethanol revolution Ethanol is plant-based alcohol produced by crops. In India, it is produced using the following raw materials: Sugarcane: Using juice, syrup, or molasses (sticky byproduct) Grains: Using broken rice from government stocks (FCI) or damaged food grains. Maize (corn): Increasingly used as a water-saving alternative to rice. Production targets: Annual Production: India’s total ethanol production capacity has reached approximately 1,990 crore litres as of late 2025. The Target: The government successfully achieved its 20% ethanol blending (E20) target in June 2025, ahead of schedule. The current focus is maintaining this 20% blend nationwide and moving toward E85 and E100 for special vehicles. Where are ethanol plants located? Ethanol plants are spread across India, but they are concentrated in states with high crop yields: Sugar-based plants: Primarily in Uttar Pradesh, Maharashtra, and Karnataka. Grain-based plants: Bihar, Haryana, and Punjab. Source: Ministry of Petroleum Natural Gas (MoPNG); NITI Aayog; USDA Biofuels Report 2026. Share of different crops in India’s total ethanol production For 20% blending, India uses a mix of three main crops: Leading Ethanol-Producing States Uttar Pradesh: 250 crore litres Maharashtra: 158 crore litres. Karnataka: 129 crore litres. Bihar: 100 crore litres. Largest Sugarcane Producing States (2025-26) Maharashtra: 13.0 million tonnes. Uttar Pradesh: 10.32 million tonnes. Karnataka: 6.35 million tonnes. Source: Indian Sugar Bio-Energy Manufacturers Association (ISMA) Forecast 2025-26; IndiaDataMap. Summary Table: Water vs. Energy Because rice uses so much water, the government is now pushing farmers to grow more maize to keep the ethanol tanks full without drying up the country’s water supply.