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Home Behind the Curtain

Can Ethanol Replace LPG as India’s Cooking Fuel and Help the Country Become Self-Sufficient?

Staff Reporter by Staff Reporter
April 6, 2026
in Behind the Curtain, Nature & Environment, South Asia
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Can Ethanol Replace LPG as India’s Cooking Fuel and Help the Country Become Self-Sufficient?
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India suddenly faces a serious cooking gas shortage because of the war on Iran. The country imports about 20 million tons of LPG every year, which covers nearly 60 percent of its total needs. This heavy dependence on foreign supplies has become risky. At the same time, India already produces large amounts of ethanol for use in cars. Ethanol is a renewable fuel that can be made at home from crops grown by Indian farmers. Many experts believe it could become a practical alternative for cooking. If properly supported, ethanol could reduce imports, increase income for farmers, and strengthen the rural economy. The question is whether India can shift from imported LPG to homegrown ethanol for daily cooking and gain long-term energy security.

Why is ethanol a suitable fuel for cooking, and what history supports its use?

Ethanol burns cleanly and produces good heat for cooking. It has been used for this purpose since the early 1900s in parts of Europe and America. In India, the Nimbkar Agricultural Research Institute began working on ethanol as a cooking and lighting fuel in the early 1980s. Researchers developed stoves that could run on low-grade ethanol mixed with water, making it cheaper and easier to produce in rural areas. One early design used simple open burning, but later versions became much more efficient. They created a stove that worked well with a 50 percent ethanol-water mixture. This was the first low-grade ethanol stove developed anywhere in the world.

The institute later combined the stove with a lantern to make a “lanstove” that provided both light and enough heat to cook a full meal for a family of five. This device received the Globe Award in Sweden in 2009. The work showed that low-grade ethanol could replace polluting kerosene and reduce dependence on imported fuels. Because low-grade ethanol needs less energy to produce, it can be made locally using simple distillation units powered even by solar energy. This makes it especially useful in villages where modern infrastructure is limited. Despite these advantages, strict excise rules in India prevented wider use for household purposes. Those rules still block easy storage and distribution of ethanol for cooking.

How much ethanol does India produce, and could it replace a large part of LPG imports?

India currently produces about 2,000 crore liters of ethanol each year. With current policies and growing capacity, this figure could rise to 10,000 crore liters by 2030. Most of this ethanol is blended with petrol for cars. Using ethanol in cars may not be the best choice in Indian conditions. Roads are often poor and traffic moves slowly, which makes internal combustion engines even less efficient. Ethanol in cars can also damage engine parts over time, and there is little clear evidence that it has significantly reduced urban air pollution.

In contrast, using ethanol for cooking could bring direct benefits. Ethanol has about 63 percent of the energy value of LPG, so more volume would be needed to replace the same amount of cooking gas. Still, if a large share of current ethanol production were directed toward cooking, it could cover roughly 50 percent of India’s present LPG imports. This shift would reduce the country’s dependence on foreign supplies and protect households from sudden price shocks or shortages caused by international conflicts.

Local production would also create new opportunities for farmers. Ethanol can be made from many crops, including sweet sorghum, sugarcane, and other sugar or starch-bearing plants. Farmers could grow these crops specifically for ethanol, increasing their income and encouraging wider cultivation of industrial crops. This would strengthen rural economies and support agricultural diversification. With proper planning, ethanol production can be done in an environmentally responsible way, avoiding overuse of water or land that could affect food security.

What are the main barriers preventing wider use of ethanol for cooking?

The biggest obstacle remains government policy. Strict excise laws treat ethanol like a controlled substance and do not easily allow its storage or sale for household use. These rules were designed to prevent misuse for drinking, but they also block practical applications like cooking. Simple changes, such as allowing denatured ethanol with additives that make it unfit for consumption, could open the door for safe household use while still preventing diversion.

Cost is another challenge. At present, the effective energy cost of LPG to consumers is about Rs. 1.5 per megajoule because of heavy government subsidies. Ethanol, based on current purchase prices set by the government, costs around Rs. 3 per megajoule—nearly double the subsidized price of LPG. Removing or adjusting subsidies on LPG while providing targeted incentives for ethanol could help balance the economics. Over time, increased local production and improved stove efficiency would bring costs down further.

Other practical issues include the need for better stoves that are easy to use, safe, and efficient. Research and development should focus on simple, low-cost designs that rural families can operate without difficulty. Training programs for users and producers would also help ensure safe handling and proper maintenance.

What practical steps can India take to make ethanol a reliable cooking fuel?

Several clear actions could move the country toward self-sufficiency in cooking fuel. First, excise laws need to be relaxed or modified specifically for household ethanol use. This would allow safe, denatured ethanol to be produced, stored, and distributed locally without unnecessary restrictions.

Second, the government should encourage research and development on improved alcohol stoves and delivery systems. Making these stoves user-friendly, efficient, and affordable would speed up adoption, especially in rural areas.

Third, farmers and ethanol producers need appropriate incentives. Support for growing suitable crops, setting up small-scale distillation units in villages, and ensuring fair prices would encourage wider participation. This approach would not only reduce imports but also create jobs and increase rural incomes.

Long-term planning is essential. India should aim to produce enough ethanol to meet a large part of its cooking needs while continuing to use some for other purposes. Policies must balance food security, water use, and environmental protection so that ethanol production supports rather than competes with agriculture.

The current LPG crisis caused by the war on Iran has made the need for alternatives urgent. Ethanol offers a homegrown, renewable solution that reduces dependence on imports and brings economic benefits to farmers. With the right policy changes and focused efforts, India has the potential to become largely self-sufficient in cooking fuel. This shift would strengthen energy security, support rural development, and protect millions of households from future supply shocks. The opportunity exists today. Acting on it could turn a current crisis into a lasting advantage for the country.

Staff Reporter

Staff Reporter

Staff Reporter at Diplotic | Covering global affairs, diplomacy & policy with clarity and insight.

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