The government’s ambitious 25 per cent ethanol blending with petrol (EBP) plan may get a nod from NITI Aayog as the think-tank is of the view that there will not be any issue as far as availability of the feedstock is concerned, which is the primary concern of many experts amid a debate over food versus fuel.
“As far as availability is concern, there is no issue whether it is from sugarcane or grain. There is a vast scope to raise productivity of maize,” NITI Aayog Member Ramesh Chand said on the sidelines of an event. He said a draft note has been received and NITI Aayog is examining it to prepare a roadmap.
Food Minister Pralhad Joshi last month said NITI Aayog has been asked to prepare a roadmap for increasing the ethanol blending to 25 per cent as the Government is confident of achieving the 20 per cent blending target by 2025-26. For the current ethanol year, which will come to an end on October 31, the government asked the oil marketing companies to start 15 per cent blending from May.
There were earlier concerns about availability of sugar and high prices of rice when the ethanol supply year started from November 2023, leading to restrictions on some feed stock for production of ethanol like sugarcane juice, B heavy molasses as well as FCI’s ₹20/kg rice programme.
Cash transfer scheme
Chand while releasing a report on cash transfer of food subsidy based on the Karnataka government’s Anna Bhagya scheme, said it is early to say that cash transfer is the alternative, but progress has been made in last 20 years whether it is market or accessibility to market and that should be taken into consideration in the evaluation of the supply of physical commodities.
Speaking on the occasion, former founder-CEO of NCML Sanjay Kaul said the option of cash transfer to both consumers and farmers should be considered holistically looking also at the consumer behaviour that has undergone a significant change in past three decades. He said while DBT is available to PDS beneficiaries, the Bhavantar-type scheme (implemented by Shivraj Singh Chouhan in Madhya Pradesh) also will ensure farmers get MSP without physical procurement of crop.
The study, authored by Shweta Saini, Siraj Hussain and Zeeshan (from Arcus Policy Research), said, “Anna Bhagya Scheme has demonstrated considerable success in impacting household welfare, financial inclusion and consumption patterns. However, the disparities in utilisation and preferences based on education and geography highlight the need for more tailored policy approaches.”
In July 2023, Karnataka started Direct Benefit Transfer for foodgrains in India by deciding to make an unconditional cash transfer of ₹34/kg per person every month under its Anna Bhagya scheme after it did not find support from the Centre to its promise of distributing additional 5 kg of rice to the PDS beneficiaries, over and above their entitlements under National Food Security Act.
Significant income
The study found that each household received an average of ₹576-₹583 per month, forming a small yet significant portion of their income. It also found a substantial monthly withdrawal by beneficiaries from the bank accounts, indicating immediate consumption or financial needs.
“A majority of the funds received through DBT were used to purchase grains, aligning with the scheme’s primary aim of enhancing food security. However, a portion of the funds was also allocated for other essential and discretionary spending, highlighting the flexibility and autonomy provided by unconditional cash transfers,” it said.
The preference for cash versus food grains was mixed, with a slightly higher inclination towards receiving food grains, particularly in urban areas. This preference distribution could be influenced by factors like the perceived reliability of in-kind support, household income levels and specific household needs.