ContentTeam

BharviShah|MBA3|2022-24

AnishkaSingh|MBA7|2022-24

India is the third largest consumer of crude oil & petroleum products in the world due to an expanding economy, growing population, increasing urbanization, evolving lifestyles and rising spending power About 98% of the fuel requirement in the road transportation sector is currently met by fossil fuels and the remaining 2% by biofuels Today, India imports 85% of its oil requirement The country is making efforts to reduce its dependence on fossil fuels and shift towards more sustainable and renewable energy sources One of the strategies being considered is the use of domestic biofuels

Ethanol is one of the principal biofuels, which is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.

India has been using ethanol-blended fuel in vehicles since the early 2000s, starting with a 5% ethanol-petrol blend known as E5

Over the years, the blend has been increased to E10, and it is currently the standard blend in petrol in many parts of the country. However, as a sufficient quantity of ethanol is not available, therefore, only around 50% of petrol sold is E10 blended, while remaining is unblended petrol (E0). The government of India started focusing on blends seriously after the National Policy on Biofuels was drafted in 2018, which aimed to reach the target of 20% ethanol blending in petrol by the year 2030.

E20 & ITS BENEFITS

E20, or a 20% ethanol blend in gasoline has recently been announced at the India Energy Week 2023 event in Bengaluru, as an effort to move towards a more eco-friendly & costeffective fuel for our vehicles There are numerous benefits to this new type of gasoline

1. Reduced Greenhouse Gas Emissions: One of the primary benefits of using E20 fuel is the reduction of greenhouse gas emissionsEthanol is a renewable biofuel that is produced from plant sources, which absorb carbon dioxide (CO2) during photosynthesis The use of E20 fuel can result in a reduction of carbon emissions by up to 7%, as compared to traditional gasoline This can also reduce pollution, improve air quality and have a positive impact on public health.

2 Reduced Dependence on Fossil Fuels: India imports 85% of its total fuel, which results in a huge import bill & makes the country vulnerable to price fluctuations and supply disruptions. The use of E20 fuel can help reduce India's dependence on imported oil and support domestic agriculture It is estimated that the use of E20 fuel could save India up to 30 billion rupees annually in foreign exchange.

3. Boost to Agriculture: Ethanol is primarily produced from sugarcane in India, and the use of E20 fuel can provide a significant boost to the agriculture sector. It can help farmers generate more income and can also help reduce sugarcane surplus, which is a major challenge faced by the industry.

4 Job Creation: The introduction of E20 fuel means implementing new technology which can create job opportunities in various sectors. Ethanol production requires skilled labour and the establishment of a supply chain, which can create employment opportunities for people living in rural areas.

5 Improved engine Performance: Ethanol acts as an octane booster, which can lead to improved engine performance and reduced engine knock

International Practices

The global production of fuel ethanol touched 110 billion litres in 2019 with USA and Brazil contributing to 84% of the global share To increase the availability of ethanol for transport use, many initiatives have been taken by various countries across the world:

Brazil legislated that the ethanol content in gasoline sold in the country should be in the range of 18% to 27.5%, which is currently at 27%. Concurrently, the use of 100% hydrous ethanol by flex-fuel vehicles in Brazil has increased the average share of ethanol in transportation to 46% in 2019.

In USA, the Environmental Protection Agency (EPA) sets Renewable Fuel Standards (RFS) volume requirements annually based on fuel availability. The EPA proposed to set the 2023 advanced biofuel mandate at 5 82 billion gallons, up 3.4% from the 2022 mandate in order to stimulate rapid growth towards higher blends like E15 and E85

In 2017, the Chinese government announced legislation proposing the use of E10 fuel for all of China

In Thailand, Alternative Energy Development Plan (ADEP)

Itargets the share of renewable and alternative energy from biofuel to increase from 7% of total fuel energy use in 2015 to 25% in 2036. However, the prices of ethanol globally in lower than that in India (as seen below) which poses a challenge for effective conversion to E20.

Impact Assessment

The impact of E20 fuel can be assessed from multiple perspectives: Environmental Impact: E20 fuel can have numerous benefits as discussed earlier

Engine Performance and Durability: E20 fuel can provide similar performance to gasoline, but it has a lower energy content, which means that fuel efficiency may be slightly reduced.

Cost: E20 fuel is typically cheaper than pure gasoline. However, the price of E20 fuel can vary depending on factors such as the price of corn & sugarcane, which is the primary feedstock used to produce ethanol

Availability: The availability of E20 fuel can vary depending on the region In some areas, it may be more readily available than in others.

GOVERNMENT SCHEME & IMPLEMENTATION

There is no Indian Government Scheme related to E20 fuel as of now. However, the Indian government has been promoting the use of biofuels and ethanol blends in the country for a long time, and E20 fuel is one of the options being considered for future use. In 2018, the Indian government announced a new biofuels policy which aims to promote the use of ethanol and other biofuels in the country The policy aims to achieve a target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030 may require modifications to run on this blend Cold weather performance: E20 fuel can have reduced performance in cold weather, which can cause starting and drivability issues in vehicles. This is because ethanol has a higher vapour pressure than gasoline, which can make it harder to start a cold engine.

To promote the use of biofuels, the government has also launched several initiatives like the Ethanol Blending Programme, National Biofuel Policy, National Policy on Biofuels 2018, etc. Under these schemes, the government provides incentives to farmers and sugar mills to produce ethanol from sugarcane and other feedstocks.

On 6th February 2023, PM Narendra Modi launched E20 fuel in India while kicking off the India Energy Week in Bengaluru The E20 fuel will now be available at select petrol pumps in 11 states and Union territories.

In conclusion, while there is no specific government scheme related to E20 fuel, the government of India is actively promoting the use of biofuels and ethanol blends to reduce dependence on fossil fuels and promote a cleaner and greener environment.

Conclusion

Source: The Indian Express

Challenges

E20 fuel, which is a blend of gasoline and ethanol with a 20% ethanol content, presents several challenges that need to be addressed:

Limited availability: E20 fuel is not widely available in many parts of the world, and the infrastructure for producing, distributing, and selling E20 fuel is not as well-developed as that for traditional gasoline This limits the ability of consumers to access and use E20 fuel

Reduced energy density: Ethanol has a lower energy density than gasoline, which means that E20 fuel provides fewer miles per gallon than traditional gasoline. This means that drivers may need to refuel more frequently and could experience decreased vehicle range

Compatibility with vehicles: Not all vehicles are compatible with E20 fuel, and some vehicles

India has taken several steps towards a cleaner fuel in recent years. One of the most significant moves has been the implementation of the Bharat Stage VI (BSVI) emission norms for vehicles, which came into effect in April 2020. BS-VI is the latest and most stringent emission standard for vehicles in India, and it has significantly reduced the amount of harmful pollutants that vehicles can emit.

In addition to this, the Indian government has also been promoting the use of cleaner fuels like Compressed Natural Gas (CNG), Liquefied Petroleum Gas (LPG), and ethanol CNG is being used as fuel for public transport in many cities across the country, and the number of CNG stations has increased significantly in recent years LPG is being promoted as a cooking fuel, and the government has launched schemes to provide LPG connections to households that were previously using traditional fuels like firewood or coal

The government has also been promoting the use of ethanol as a biofuel, and it has set a target of achieving 20% ethanol blending with petrol by 2025

This move is expected to reduce the country's dependence on fossil fuels and significantly reduce carbon emissions

Furthermore, the government has launched several schemes to encourage the adoption of electric vehicles (EVs) These include tax incentives, subsidies for EV manufacturers, and the development of charging infrastructure. The FAME II scheme, which was launched in 2019, provides incentives for the purchase of EVs and the development of charging infrastructure.

The FAME II scheme, which was launched in 2019, provides incentives for the purchase of EVs and the development of charging infrastructure.

Overall, India's steps towards a cleaner fuel are a positive development and will go a long way in reducing air pollution and improving the country's environmental health However, more needs to be done to promote the use of cleaner fuels and reduce the country's dependence on fossil fuels.

Economic Impact Of Agricultural Investments

Unmesh Datar I MBA 3 | 2022-24

Aditi Vora I MBA 9| 2022-24

WHAT IS TRIPS AGREEMENT?

The agricultural sector plays a vital role in the Indian economy, employing about 50% of the workforce and contributing about 17% of the country’s GDP India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. In recent years, the Indian government has been increasing its focus on the agricultural sector, recognizing its immense potential for economic growth and development. It indirectly influences economic growth to a larger extent so as to support the vast and growing Indian population

One of the key factors that can contribute to the growth of the agricultural sector is increased spending and development Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.

The Indian food industry is poised for huge growth, increasing its contribution to the world food trade every year due to its immense potential for value addition, particularly within the food processing industry The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth In this article, we will examine the impact of agriculture spending and development on the Indian economy, including the benefits, challenges, and potential areas for improvement

India is one of the world's largest agricultural producers, with a diverse range of crops grown across the country However, the country also imports and exports significant agricultural products to meet the growing demand for food and other agricultural products In this article, we will examine the agricultural imports and exports of India, including the types of products imported and exported,the reasons for import and export, and the impact on the Indian economy.

Types Of Agriculture Imports

India imports a wide range of agricultural products to meet the demand for food, feed, and other uses Some of the major agricultural imports include:

Edible Oils - India is one of the world’s largest importers of edible oils The country imports a variety of oils such as palm oil, soybean oil, sunflower oil, and rapeseed oil to meet the demand for cooking oil and other food products

Pulses - India is the largest consumer and importer of pulses in the world The country imports a variety of pulses such as lentils, chickpeas, and beans to meet the demand for protein-rich foods.

Fruits and Vegetables - India imports a variety of fruits and vegetables such as apples, grapes, kiwi, and onions to meet the demand for fresh produce.

Dairy Products - India is the largest producer of milk in the world, but the country also imports a significant amount of dairy products such as cheese, butter, and milk powder to meet the demand for these products.

Types Of Agriculture Exports

India is also a significant exporter of agricultural products The major agricultural exports of India include:

Rice - India is the largest exporter of rice in the world The country exports different types of rice such as Basmati rice, non-Basmati rice, and organic rice to countries such as Iran, Saudi Arabia, and Iraq

Spices - India is known for its wide range of spices, and the country is the largest exporter of spices in the world. Some of the major spices exported from India include pepper, cardamom, cumin, and ginger

Tea - India is the second-largest producer of tea in the world and exports tea to different countries such as the United States, the United Kingdom, and the United Arab Emirates.

Fruits and Vegetables - India exports a variety of fruits and vegetables such as mangoes, grapes, and bananas to different countries

Reasons For Agriculture Imports And Exports

The primary reason for agricultural imports in India is to meet the growing demand for food and other agricultural products. The population of India is rapidly growing, and with increasing income levels, the demand for food and other agricultural products is also increasing. While India is a significant agricultural producer, the country's production capacity is not sufficient to meet the growing demand for food and other agricultural products.

On the other hand, the primary reason for agricultural exports is to earn foreign exchange and support the growth of the country's agricultural sector India is a significant exporter of rice, spices, and other agricultural products, and the earnings from these exports help to support the country's economy

Impact On The Indian Economy

The import and export of agricultural products have both positive and negative impacts on the Indian economy. On the positive side, the import of agricultural products helps to meet the growing demand for food and other agricultural products in the country. This, in turn, helps to ensure food security and supports the overall economic growth of the country Similarly, the export of agricultural products helps to earn foreign exchange and support the growth of the country's agricultural sector.

However, there are also some negative impacts associated with agricultural imports and exports. The import of agricultural products can lead to the displacement of domestic farmers, particularly in the case of products such as edible oils and pulses.

decline in domestic prices, negatively impacting the income of domestic farmers

In addition, the import of agricultural products can also have a negative impact on the balance of trade Since India is a net importer of agricultural products, the country is required to pay for these imports with foreign currency, leading to a drain on the country's foreign exchange reserves

GOVERNMENT'S FOCUS ON AGRICULTURE AND ITS BENEFITS

Increased investment in the agricultural sector can lead to the adoption of new technologies and practices, which can help to increase productivity

Increased spending and development in the sector can lead to the creation of new jobs, particularly in rural areas

Agricultural development can also help to reduce food inflation in the country.

Increased investment in the agricultural sector can also help to increase agricultural exports. India is one of the largest exporters of agricultural products in the world, with exports of around $38 5 billion in 2020

The import of cheap agricultural products from other countries can also lead to a

The import of agricultural products is an essential aspect of the Indian economy, helping to meet the growing demand for food and other agricultural products. While there are some negative impacts associated with agricultural imports, the overall impact is positive