India finds herself in a precarious position when it comes to addressing her nutrition and hunger problem. The pressing issue calls for a conscientious approach and a search for viable alternatives, in place of spending on ethanol production. In a surprising move, the government has chosen to part with an immense 5.2 million tonnes of rice – part of the nation’s food security reserve – for the production of ethanol. This has been done at a subsidised rate of ?22.50 per kg which, by all means, strikes as anomalous.
Indeed, it appears staggering that such an initiative should take place in a nation struggling with severe hunger and malnutrition issues. India is, after all, home to the largest number of underfed children globally. A World Bank report from 2024 indicates that in this nation, extreme poverty – defined as subsisting on less than ?180 per day – is the harsh reality for around 129 million people.
Against such a backdrop, the move to channel a major staple food – rice – towards ethanol production appears counterintuitive. Still, the Indian government presses forward with this initiative, supplying ethanol producers with rice at greatly subsidised rates. The first batch, amounting to 2.4 million tonnes, has already been dispatched to these manufacturers.
The government has further plans to release an additional set of 2.8 million tonnes. Three reasons are furnished to rationalise this action. One of these reasons is the assertion that the Food Corporation of India possesses rice reserves that exceed the food security buffer required, with the figures being over 38 million tonnes versus the standard 13.5 million tonnes as reported in May 2025.
A second justification is offered in the form of resource efficiency. By routing rice towards ethanol production, the government aims to lower excess stock while simultaneously opening up and freeing storage facilities. The benefit of preventing potential spoilage and loss is also presented as a rationale behind this move.
The third and pivotal reason given is energy dependence. The blending of ethanol with petrol is seen as a necessary step towards reducing reliance on the import of pricey fossil fuels. Despite these justifications, allotting resources this way demands a critical analysis concerning its effectiveness and fairness.
The alarming gravity of India’s hunger and nutrition problems warrants serious attention as opposed to debating the validity of global studies, like the hunger index. What is also needed is an informed pursuit of alternatives to ethanol production – alternatives that ensure the taxes gathered from the common man is put to the best use possible.
In this light, the decision to reroute subsidised grains towards ethanol manufactures at even further subsidised rates seems to contradict economic logic. It seems like a roundabout way of handling the issue, potentially compromising social justice. There should be a greater focus on using these resources to overcome the dire hunger and nutritional problems looming over large sections of the population.
The government’s actions indicate a preference for energy production over addressing pressing food scarcity issues. Nonetheless, conversations around food security, nutrition, and poverty eradication need to be prioritised over the effective use of surplus resources for alternative purposes.
The complex situation underscores the importance of developing a balanced strategy. One where vital resources don’t get diverted from their primary function – feeding the populace – while also keeping in view India’s energy needs. Trade-offs need to be examined thoroughly, with India’s vulnerable population in mind.
The focus should be on prioritising poverty reduction, enhancing nutrition, and laying a strong foundation for food security. Simultaneously, strategies for optimised resource utilisation need to be evolved, which doesn’t compromise the priority issues. It is a fine balance that requires careful planning and sensitive execution.
The move of diverting rice to produce ethanol opens up numerous questions about its economic rationale and implications for social justice. While energy efficiency is an important objective, it should not come at the expense of those struggling to survive on a daily basis. Balancing economic objectives with social justice is paramount.
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