JUDGMENT

SANJEEV NARULA, J. (Oral):

1. The Petitioner, Mr. Neeraj Kumar Dubey, through this Public Interest Litigation, raises his concerns regarding the National Policy on Biofuels, 2018 [“NBP 2018”], promulgated by Respondent No. 2 – Ministry of Petroleum and Natural Gas, Government of India on 04th June, 2018, and subsequently amended on 15th June, 2022. This policy permits use of food grains – including damaged grains like wheat and broken rice – as feedstock for ethanol production. While the NBP 2018 aims to meet burgeoning energy needs and targets a 20% ethanol blend with petrol by the year 2025- 26, the Petitioner argues that such a shift might precipitate unforeseen consequences for the masses, particularly a potential food grain shortage, that could leave many citizens starving.

FACTS AND GROUNDS OF CHALLENGE PRESENTED BY PETITIONER

2. Respondent No. 2 notified the NBP 2018 on 04th June 2018, thereby paving the way for production of bioethanol from agriculture residues, biomass, food grains, starch containing material etc. Until the notification of NBP 2018, bioethanol was sanctioned to be produced from non-food sources, such as molasses, cellulose, and lignocellulose material, including the petrochemical route. However, with the ambition of achieving a 20% ethanol blend in petrol, the NBP 2018 now facilitates production of ethanol using food grains and further permits diversion of such grains from the Food Corporation of India [“FCI”] to distilleries.

3. In keeping with the goals of EBP 2018, through their decisions taken in meetings held on 20th April, 2020 and 09th November, 2020, the National Biofuel Coordination Committee [“NBCC”] has approved the diversion of surplus rice and maize held by the FCI, towards production of bioethanol. Later, in December, 2020, an interest subvention scheme aimed at boosting and expanding ethanol production capacity was floated to attract distilleries that utilize grains and other feedstocks like sorghum and sugar beet, in addition to the previously included molasses-based distilleries.

4. In June, 2021, the NITI Aayog released a report curated by an Expert Committee, outlining a “Roadmap for Ethanol Blending in India from 2020- 25”. This comprehensive report specifies that in order to meet the targeted ethanol production from food grains, India will need 165 lakh metric tonnes of food grains. Currently, only 40 lakh tonnes of damaged food grains and 20 lakh tonnes of maize in surplus, are available. The report further notes that sufficient rice is in stock with the FCI and that the country is producing adequate food grains and sugar to cope with the ethanol demand. However, these projected calculations of the Expert Committee have been scrutinized and challenged in an article featured in the popular digital media platform –

The Print.

5. The production costs of ethanol derived from sugarcane juice, damaged food grain and FCI’s surplus rice stock is Rs.62.65, Rs.51.55 and Rs.56.87 per litre, respectively. In comparison, bioethanol produced through B-Molasses and C-Molasses is priced at Rs.57.61 and Rs.45.69 per litre.

6. In formulating the NBP 2018, the policy makers have overlooked a critical perspective: India, a nation grappling with chronic undernourishment, relies heavily on free ration provided to an approximate 80 crore of its populace under the National Food Security Act, 2013. Utilizing the grains, which could otherwise be distributed through the Public Distribution System, for ethanol production seems both insensitive and ethically questionable on the Government’s side. The Global Hunger Index positions India at a concerning 107 out of 121 countries, trailing behind neighbouring nations like Bangladesh (at 84), Nepal (at 81), Pakistan (at 99), and Sri Lanka (at 64). India’s child wasting rate, indicating low weight relative to height, stands at an alarming 19.3%, which is the highest globally. To provide perspective on the deteriorating situation over time, Petitioner refers to In