{
  "id": 4912124,
  "title": "Ethanol Issue Has Entered Indian Kitchens, Impacting Household Budgets",
  "url": "https://urgent.news/2026/09/01/ethanol-issue-has-entered-indian-kitchens-impacting-household-budgets",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-01T09:04:00.000Z",
  "source": {
    "name": "The Diplomat",
    "slug": "the-diplomat",
    "url": "https://thediplomat.com/2026/09/ethanol-issue-has-entered-indian-kitchens-impacting-household-budgets/"
  },
  "original_language": "en",
  "account": "India’s plan to blend ethanol with petrol to reduce crude imports has entered households, causing a stir in budgets. Union Minister Nitin Gadkari’s push for ethanol is backed by his sons' companies, sparking accusations of conflict of interest. However, the introduction of E20 fuel hasn’t lowered petrol prices or improved crude imports. Instead, consumers face issues like reduced mileage, compatibility concerns, and higher costs for ethanol-free premium fuel. Social media is abuzz with complaints about the high ethanol production cost of 66-72 rupees per liter versus the refinery cost of 52-55 rupees per liter. The situation worsened when sugar prices skyrocketed due to increased ethanol production, which relies heavily on corn. Corn, essential for poultry feed, also saw a steep rise in prices, affecting India’s position as Asia’s top corn exporter. The poultry and starch industries are competing for limited corn supplies, driving up prices. Corn’s impact extends beyond food, with egg prices up 35-40 percent due to increased poultry costs. The government’s diversion of grains for ethanol production may have set off a chain reaction across the food chain. History shows that diverting food crops to fuel can ignite food price inflation, as seen in the 2007-08 global crisis. Countries like Mexico and Haiti experienced similar impacts when corn-based ethanol raised food prices. India’s ethanol policy could face similar consequences, making it a risky move with far-reaching consequences.",
  "summary": "What began as an energy policy to reduce crude imports has travelled through the agricultural supply chain and ended up on the dinner table.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}