NEW DELHI — Delhi Chief Minister Arvind Kejriwal will travel to Ladakh on July 16 to meet environmental activist Sonam Wangchuk, who has been on a hunger strike since July 10 demanding the withdrawal of India’s E20 fuel mandate. The visit, announced in a sharply worded letter to Prime Minister Narendra Modi, escalates a growing national dispute over the government’s ethanol-blending policy, which critics say threatens food security, water supplies, and small farmers while benefiting corporate interests.
The E20 program, which mandates a 20% ethanol blend in petrol, was launched by the central government in 2025 as a cornerstone of India’s climate and energy security strategy. It aims to reduce fossil fuel imports, lower carbon emissions, and create new revenue streams for farmers. But the policy has sparked fierce opposition from environmentalists, agricultural experts, and state governments, who argue it diverts land and water from food production to fuel crops, particularly sugarcane, in a country already grappling with water scarcity and rising food prices.
Wangchuk, a Ladakh-based engineer, educator, and climate advocate known for his work on sustainable development in the Himalayas, began his indefinite hunger strike in Leh to demand the immediate rollback of the E20 mandate and greater political autonomy for Ladakh. His protest has galvanized support from civil society groups, opposition parties, and thousands of citizens across India, with the hashtag #WithdrawE20 trending on social media platforms for four consecutive days.
In his letter to the Prime Minister, Kejriwal described the E20 policy as “a misguided initiative that prioritizes corporate profits over the well-being of farmers and the environment.” He urged the government to suspend the mandate and initiate broad consultations with state governments, agricultural scientists, and environmental experts before proceeding. The Delhi government, led by Kejriwal’s Aam Aadmi Party (AAP), has been a vocal critic of the policy, citing concerns that ethanol production from sugarcane could drive up food prices and deepen water crises in key agricultural states.
The Ministry of Petroleum and Natural Gas has defended the E20 program, calling it a “scientifically validated and economically sound” measure aligned with India’s commitments under the 2015 Paris Agreement. A ministry spokesperson told Herald Express that the policy has undergone “rigorous technical and economic assessments” and will reduce India’s crude oil import bill by an estimated $4 billion annually while generating additional income for farmers. The spokesperson added that the government is closely monitoring implementation to mitigate any unintended consequences, including water use and food security risks.
However, independent experts and agricultural economists have raised serious questions about the policy’s long-term sustainability. A 2025 report by the Indian Council of Agricultural Research (ICAR) warned that large-scale ethanol production from sugarcane could increase water demand in already water-stressed regions like Maharashtra and Uttar Pradesh, where groundwater levels have been declining for decades. The report also noted that diverting land from food crops to sugarcane could reduce the availability of staples like rice and wheat, potentially pushing up food prices in a country where nearly 15% of the population remains undernourished.
The debate has become increasingly polarized along political lines. Opposition parties, including the Indian National Congress and regional parties like the AAP and Trinamool Congress, have rallied behind Wangchuk’s protest, framing the E20 policy as an example of the central government’s top-down decision-making that ignores local concerns. Congress leader Rahul Gandhi, in a statement on July 13, accused the government of “sacrificing farmers and the environment for the benefit of a few corporate houses.” He called for a parliamentary review of the policy and urged state governments to resist its implementation.
The ruling Bharatiya Janata Party (BJP), meanwhile, has dismissed the criticism as politically motivated. BJP spokesperson Gaurav Bhatia told reporters that opposition parties are “spreading misinformation to derail a critical national initiative” and accused Kejriwal of using the issue to “score political points” ahead of upcoming state elections in Maharashtra and Haryana. The BJP has also pointed to the policy’s potential to create jobs in rural areas and reduce India’s dependence on foreign oil, which currently accounts for over 80% of the country’s petroleum consumption.
Wangchuk’s protest has drawn particular attention to the ecological and cultural vulnerabilities of Ladakh, a high-altitude desert region where water scarcity is a chronic issue. Local residents and environmental groups have expressed concern that increased ethanol production in other parts of India could exacerbate water shortages in the Himalayas by altering river flows and reducing glacial meltwater availability. Wangchuk, in a video message from his protest site, warned that the E20 policy “could turn India’s breadbasket into a fuel tank” and called for a moratorium on ethanol blending until a comprehensive environmental impact assessment is conducted.
The central government has so far shown no indication of reversing the E20 mandate, which is scheduled to expand to all states by December 2026. However, the growing resistance from state governments, civil society, and independent experts could force a reassessment of the policy’s implementation timeline or its underlying assumptions. Some analysts suggest that the government may introduce compensatory measures, such as subsidies for water-efficient farming or incentives for ethanol production from non-food crops like agricultural waste.
Why It Matters
The dispute over the E20 fuel policy is more than a technical debate about energy and agriculture—it reflects deeper tensions over India’s development priorities, federalism, and the role of the state in managing natural resources. At its core, the controversy pits the central government’s push for energy independence and climate action against concerns about food security, water sustainability, and the livelihoods of millions of small farmers.
India is the world’s third-largest emitter of greenhouse gases and one of the most vulnerable countries to climate change. The E20 policy is a key component of its Nationally Determined Contribution (NDC) under the Paris Agreement, which pledges to reduce the emissions intensity of its GDP by 45% by 2030 and achieve net-zero emissions by 2070. Ethanol blending is also seen as a way to reduce the country’s massive oil import bill, which stood at $120 billion in 2025, and to create new economic opportunities in rural areas.
However, the policy’s reliance on sugarcane—a water-intensive crop that requires approximately 2,000 liters of water to produce one kilogram of sugar—has raised alarms in a country where 600 million people face high to extreme water stress. A 2026 study by the Council on Energy, Environment and Water (CEEW) found that ethanol production from sugarcane could increase water demand in Maharashtra by up to 15% by 2030, further straining a state already plagued by droughts and farmer suicides. The study also warned that the policy could lead to a 5-10% increase in food prices over the next decade if not carefully managed.
The political stakes are equally high. The E20 debate comes at a time when India’s federal structure is under strain, with state governments increasingly challenging central policies on issues ranging from agriculture to environmental regulation. Kejriwal’s decision to visit Wangchuk’s protest site is widely seen as an attempt to position the AAP as a champion of environmental and farmer rights, particularly in states like Maharashtra and Haryana, where elections are due later this year. The BJP, meanwhile, has sought to frame the opposition’s stance as anti-development and anti-national, a narrative that resonates with its core voter base.
Background and Context
India’s ethanol blending program began in 2003 as a voluntary initiative, but it gained momentum in 2021 when the government set a target of 20% ethanol blending by 2025, later advanced to 2023. The program was initially focused on ethanol derived from molasses, a byproduct of sugar production, but the government later expanded it to include ethanol produced directly from sugarcane juice, rice, maize, and other food crops. This shift was driven by the need to meet the ambitious blending targets and reduce oil imports, but it also sparked concerns about food security and land use.
The E20 mandate, announced in 2025, made 20% ethanol blending mandatory in petrol across the country. The government argued that the policy would save 6 million tons of carbon dioxide emissions annually, reduce oil imports by 10%, and generate an additional ₹50,000 crore ($6 billion) in revenue for farmers. It also pointed to the success of ethanol blending in countries like Brazil and the United States, where similar programs have been in place for decades.
However, India’s agricultural and ecological context is vastly different from that of Brazil or the U.S. India is the world’s second-largest producer of sugarcane, but it is also home to 190 million undernourished people, according to the United Nations. The country’s water resources are severely stressed, with per capita water availability declining by 70% since 1950. Moreover, India’s small and marginal farmers, who make up 86% of the agricultural workforce, often lack access to irrigation and rely on rain-fed farming, making them particularly vulnerable to shifts in land use and water availability.
The E20 policy has also reignited debates over federalism in India. Under the Constitution, agriculture and water are state subjects, but the central government has the authority to regulate interstate trade and commerce in agricultural produce. This has led to tensions between the center and state governments, particularly in states like Punjab, Haryana, and Maharashtra, where farmers have protested against central policies in the past. The 2020-21 farmers’ protests, which lasted for over a year and drew global attention, were a stark reminder of the potential for agricultural policies to spark widespread unrest.
Competing Claims and Uncertainty
The debate over the E20 policy is marked by competing claims and a lack of consensus among experts. Proponents argue that the policy is a necessary step toward energy security and climate action, while critics warn of its unintended consequences for food security and water resources. The truth, as is often the case in complex policy debates, likely lies somewhere in between.
Government’s Position:
The Ministry of Petroleum and Natural Gas has consistently defended the E20 policy, citing its environmental and economic benefits. In a press release issued on July 12, the ministry stated that ethanol blending has already reduced India’s oil import bill by $2.5 billion in 2025 and created over 500,000 jobs in rural areas. The ministry also pointed to a 2025 study by the National Sugar Institute (NSI), which found that ethanol production from sugarcane does not significantly impact food security, as only a small portion of the crop is diverted for fuel production.
The government has also highlighted the policy’s potential to reduce air pollution in cities, where vehicular emissions are a major contributor to respiratory diseases. A 2026 report by the Central Pollution Control Board (CPCB) estimated that the E20 mandate could reduce particulate matter emissions from vehicles by 10-15% in urban areas.
Critics’ Concerns:
Opponents of the E20 policy, including Wangchuk, Kejriwal, and agricultural economists, argue that the government’s claims are based on flawed assumptions. They point out that India’s sugarcane production is concentrated in a few states, where water scarcity is already a critical issue. A 2026 study by the Indian Institute of Technology (IIT) Delhi found that ethanol production from sugarcane could increase water demand in Maharashtra by up to 20% by 2030, leading to further depletion of groundwater reserves.
Critics also argue that the policy could lead to a rise in food prices, as land and water are diverted from food crops to sugarcane. A report by the National Bank for
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Story synopsis gathered from: Indian Express – India — source.
