The Maize Miracle: Transforming Bihar's Fields with E 20
BY YUVIKA SINGH / SEPTEMBER 6, 2023
DESIGNED BY NIDHI BHALEKAR
It is ironic that Bihar, once celebrated as an agricultural powerhouse, now experiences subpar growth in its agriculture sector. However, beneath the surface lies a golden opportunity for the state in maize - a crop that has ignited a spark of hope for rewriting the state’s agricultural future.
ihar pulsates with a unique energy. Known as the cradle of ancient civilisation, its fertile Gangetic plains and glorious history make it vibrant and diverse. Agriculture has always been a lifeline of this bustling land. However, the state’s economic landscape underwent a significant transformation following its division in 2000, which left Jharkhand with the mineral-rich regions, while Bihar’s reliance on agriculture deepend.
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Regardless of its historical importance, the contribution of agriculture and allied sectors to Bihar’s economy declined by 43.2% from 1990-91 to 2008-09, revealing the urgent need to diversify and expand agricultural production (Salam & Anwer, 2013). Maize, a crop with immense potential, emerged as a promising alternative to traditional, less profitable crops. Initially used primarily for livestock feed, it evolved into a versatile product. A resilient staple, maize thrives in diverse climates and packs a nutritional punch. It is not just a crucial food source, but also a vital raw material in the production of various bio-based products like biochemicals, bioplastics, pharmaceuticals and most recently, biofuels.
Stock image from Dreamstime via Pinterest
Over 80%of the produce had to be transported outside the state for processing, resulting in huge transportation costs incurred by the farmers
Bihar is the third largest producer of maize in India, contributing significantly to the nation’s 2% share of the globe’s maize production (Singh, Kasana, & Singh, n.d.). Cultivation of maize provides livelihood to about 1.3 million farmers in the state, majority of whom are small and marginal. Despite this, the lack of processing plants within the state led to farmers facing significant challenges. Over 80% of the produce had to be transported outside the state for processing, resulting in huge transportation costs incurred by the farmers (Singh et al., n.d.). The logistical hurdle coupled with the limited market opportunities, significantly impacts their ability to capitalise on the crop’s full potential.
Image Graphics by Team Geostrata
To address these challenges, the introduction of the E20 policy has ushered in a new era of opportunities for Bihar’s maize tillers. This policy, outlined in the National Policy on Biofuels by the Government of India notified in 2018, aims to accelerate India’s transition to a greener fuel mix. By mandating a 20% ethanol blend in gasoline, the government has created a huge domestic market, directly benefitting farmers by providing stable demand for their maize crops.
Ethanol production was one of humanity’s earliest efforts in value-added agriculture based processing. Originally developed for industrial purposes, ethanol has evolved from an agricultural byproduct into a key renewable fuel. Crafted from a diverse array of crops including sugarcane, corn, barley, sugar beets, and even rice husk, it undergoes a complex journey from farm to fuel tank. A crucial step in this process involves the addition of a denaturant to make the ethanol unfit for consumption. Modern refineries have evolved into sophisticated facilities producing multiple fuels and byproducts.
Source: Bioenergy Technologies Office. (n.d.). Corn to Ethanol the Process [Infographic]. Office of Energy Efficiency and Renewable Energy.
https://www.energy.gov/eere/bioenergy/bioenergizeme-infographic-challenge-corn-ethanol-process
There is immense potential in the area due to already existing produce in sugarcane, maize and feedstock. Bihar’s major maize producing regions include Champaran, Samastipur, Begusarai and others.
India’s ethanol production is currently heavily reliant on water-intensive crop sugarcane, with over 60% derived from sugarcane molasses. Bihar offers a sustainable alternative with its abundant maize fields. Maize cultivation is less water demanding, a crucial factor given that producing one litre of ethanol using sugarcane requires 2,860 litres of water (Vohra, 2022). The robust ethanol industry relies heavily on grain-based production, with at least 32 of the State's 47 ethanol plants utilising grains as feedstock. The crop is cultivated in all three seasons of the year i.e. kharif (monsoon), rabi (winter) and zaid (summer) in the State. It is also the only agricultural crop in Bihar, whose productivity (4.42 t ha-1) is much higher as compared to the national average (2.5 t ha-1) (Kumari, 2017). Recognising this potential, Bihar was the first state to implement ethanol production promotion policy under the National Policy on Biofuels, 2021. There is immense potential in the area due to already existing produce in sugarcane, maize and feedstock. Bihar’s major maize producing regions include Champaran, Samastipur, Begusarai and others.
Consequently, the policy has spurred a significant increase in maize demand, leading to a surge in prices for farmers by approximately 42% over the past 3-4 years (INR 1,600-1,700 per quintal into INR 2,300-2,400 per quintal) (Mongabay, 2024). This increase in demand for maize (to attain pan India ethanol production of 1500 crore litres) has created fresh opportunities for farmers with improved incomes, enabling them to invest in better agricultural practices and adopt advanced technologies. The establishment of a domestic ethanol industry has not only created local jobs but also provided a stable market for maize producers. This has incentivised them to continue the cultivation of maize while maximising their profits and reducing transportation costs.
Source: Sinha, R. (2023). Major maize producing districts in Bihar (Production and area wise) & An Assessment of Maize and its Value Chain in Bihar. [Diagram]. Asian Journal of Dairy and Food Research.
https://arccjournals.com/journal/asian-journal-of-dairy-and-food-research/DR-2062
To further encourage investors, Bihar offers various incentives under its industrial promotion policy. These include exemptions from stamp duty, registration and land conversion fees. Additionally, the government reimburses electricity duty and employment and skill development. Furthermore, investors can receive a 15% government subsidy, capped at INR 5 crore (Sharma, 2021).
Further, the focus on biofuel production aligns perfectly with the central government’s initiative Atmanirbhar Bharat, a strategic push for self-reliance and reduced dependency on imports. As a result, the initiative has seen significant progress. Initially targeting 20% ethanol blended petrol by 2030, the government advanced this goal to 2025-26 due to the program’s remarkable progress, having already achieved a 10% ethanol blend in June 2022. Now, by 2030, the policy aims to replace approximately 1,016 liters of petrol with ethanol.
The central government has approved 47 ethanol plants in Bihar from July 2018 to April 2022). Bihar has also witnessed the establishment 40 of exclusive ethanol blended petrol pumps as of February 2024
Additionally, the central government has approved 47 ethanol plants in Bihar from July 2018 to April 2022 (Sinha, 2023). Bihar has also witnessed the establishment of 40 exclusive ethanol blended petrol pumps as of February 2024 (Prabhat Khabar, 2024). To further expand the raw material base, the Union Cabinet has allowed the use of sugarcane juice, sugar-containing materials, starch-containing materials like corn and cassava, and even damaged food grains in ethanol production.
India incurs a huge cost of importing petroleum, most of which is used in transportation. A successful E20 program can save the country USD 4 billion per annum, that is, around INR 30,000 cr per annum, besides also being a less polluting fuel and offering efficiency at a lower cost (Kumar, 2023).
Source: Gateway Media. (2022). First greenfield plant inaugurated in Bihar. [Photograph]. Future Fuels.
https://futurefuels.in/first-greenfield-ethanol-plant-inaugurated-in-bihar/
Bihar’s success in cultivating and utilising maize as a key input for ethanol production provides a compelling model for other states facing agriculture and energy challenges. With maize emerging as one of the potential crops that addresses several issues like food security, climate change, water scarcity, farming systems, and bio-fuels, the maize revolution in Bihar is also a testament to the power of innovation and policy shifts. It also demonstrates the importance of a multifaceted approach, where each factor is evaluated and tailored to local contexts. States like Odisha and Uttar Pradesh possess significant agricultural potential that remains untapped due to various factors such as lack of infrastructure, technology, and market linkages. To replicate Bihar’s progress, they must conduct comprehensive agro-climatic assessments and undertake a thorough analysis. While the shift from sugar to cereal grains as the primary feedstock is a pivotal development, sustained innovation, policy refinement and a deep commitment to research are indispensable for maximising the benefits of this burgeoning sector. By nurturing a vibrant ecosystem of entrepreneurs, policymakers and scientists, India can expedite the transition to a clean energy landscape, diminish reliance on fossil fuels, and secure a future powered by clean energy.
Keywords
Bihar, Maize production, E20 policy, Ethanol production, Agriculture, Biofuels, Gangetic plains, Economic transformation, Diversification, Farmers, Industrial promotion policy, Atmanirbhar Bharat, Ethanol blend, Sustainability, Renewable energy, Climate change, Water scarcity, Food security, Policy shifts, Innovation in agriculture
References
Agriculture Department | Government of Bihar.
https://state.bihar.gov.in/krishi/CitizenHome.html
Agricultural Challenges of Bihar. (n.d.). Bihar Naman.
https://i.filecdn.in/567bihar/AgriculturechallengesofBihar,Notes-1641498113976.pdf
Kumar, C. (2023, February 6). Explainer: What is Ethanol blending petrol & India’s E20. Times of India.
Kumar, P. (2024, April 12). Maize takes centre stage as Bihar ramps up biofuel production. Mongabay.
Kumari, S. (2017, July). Economics of Maize Production in Bhagalpur District of Bihar. KrishiKosh.
https://krishikosh.egranth.ac.in/items/c6077d31-ab0a-4065-841f-cd44284ed00d
Mishra, A. (2022, May 3). Why is Bihar Bullish on Ethanol And How this Alternative Fuel Fits in India’s Energy Jigsaw. Swarajya.
https://swarajyamag.com/infrastructure/bihars-ethanol-policy-why-the-state-is-bullish-on-ethano
Cabinet Approves National Policy on Biofuels. (2018, May 16). Press Information Bureau.
https://pib.gov.in/Pressreleaseshare.aspx?PRID=1532265
Salam, A. & Anwer, E. (2013, January). Agriculture and the Economy of Bihar: An Analysis. International Journal of Scientific and Research Publication.
https://www.researchgate.net/publication/354716037_AGRICULTURE_AND_THE_ECONOMY_OF_BIHAR_AN_ANALYSIS
Sharma, R. (2021, March 30). Bihar First State in the Country to Implement Ethanol Promotion Policy. Udyogmitra Bihar.
Sinha, S. (2023, November 24). Bihar aims to grow bigger in ethanol production, 9 projects with around 1500 klpd started functioning. The Hindu Business Line.
Singh, S.B., Kasana, R.K., & Singh, S.P. (n.d.). Status of Corn Cultivation in Bihar: opportunities and future Challenges. ICAR-IIMR.
https://krishi.icar.gov.in/jspui/bitstream/123456789/21351/2/Corn_Status_in_Bihar_SBSINGH.pdf
Bihar: An Unlikely Corn Revolution. (2024, April 04). Udyogmitra Bihar.
https://udyogmitrabihar.in/bihar-an-unlikely-corn-revolution/
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