Ethanol Subsidies: Public Money, Private Production?
Considering the supply chain of ethanol:
Farmers -> Sugar mills / Grain processors / Distilleries -> Public Sector Oil Marketing Companies -> Consumers [Petrol ICE vehicle owners]
Why didn't India build PSU ethanol distilleries so that the crude oil import savings remain within the PSU, in other words, within government control?
Why are we not questioning the Indian government on this? Rather, all the profiteering and benefits of the subsidies are being availed by distilleries/sugar mill/food processors owned by private companies.
A major portion of the crude oil import savings is being directed to these private sector companies, owned by politicians from all parties, including the BJP, Congress, etc.
Key QUESTIONS:
Should India have chosen a PSU-led ethanol model?
Who really benefits from India's ethanol subsidies?
India's ethanol policy: Why incentivize private distilleries instead of PSUs?