PM's appeal: Diesel consumption in agriculture can be scaled back with use of alternative energy, experts say

A high-level appeal has been made for scaling back diesel consumption in the agricultural sector, prompting expert discussion on viable alternative energy pa...

What Happened

A high-level appeal has been made for scaling back diesel consumption in the agricultural sector, prompting expert discussion on viable alternative energy pathways for Indian farming.
Agriculture is the second-largest consumer of diesel in India after transportation; an estimated 80 lakh (8 million) of approximately 3 crore (30 million) agricultural pumps nationwide run on diesel, consuming approximately 5.52 billion litres of diesel per annum for irrigation alone.
Experts are advocating for a multi-pronged energy transition in agriculture: greater adoption of solar-powered irrigation pumps (under PM-KUSUM), compressed biogas (CBG) from farm and organic waste, and ethanol-blended fuels.
The transition is framed around three objectives — reducing farm input costs, improving farmer profitability during the kharif (summer crop) season, and advancing energy security by cutting crude oil imports.
The kharif season, which begins with monsoon onset (typically June–July), is highlighted as the period of peak agricultural diesel demand, making pre-season policy interventions particularly significant.

Static Topic Bridges

National Policy on Biofuels, 2018 — Framework and Targets

India's National Policy on Biofuels (NPB) was approved by the Union Cabinet in May 2018, replacing the earlier 2009 policy. The NPB 2018 promotes the use of domestically produced biofuels — ethanol (from surplus foodgrains, sugarcane, damaged food, etc.), biodiesel, and biogas — to reduce crude oil import dependence, augment farmer incomes, and generate rural employment. A 2022 amendment to the NPB 2018 advanced India's ethanol blending target for petrol from 20% by 2030 to 20% by Ethanol Supply Year (ESY) 2025-26. India achieved approximately 17.98% ethanol blending by February 2025, ahead of earlier projections. For biodiesel, the indicative target remains 5% blending in diesel by 2030.

National Policy on Biofuels 2018: notified May 16, 2018
2022 amendment: accelerated ethanol blending target to 20% by ESY 2025-26 (from 2030)
Ethanol blending progress: ~12.06% (ESY 2022-23); ~14.60% (ESY 2023-24); ~17.98% (ESY 2024-25, as of Feb 2025)
Biodiesel blending target: 5% in diesel by 2030 (indicative)
Feedstocks for ethanol: surplus rice/wheat, damaged foodgrains, sugarcane juice, B-heavy molasses, cellulosic biomass
Nodal ministries: Ministry of Petroleum and Natural Gas; Ministry of New and Renewable Energy

Connection to this news: The push to reduce agricultural diesel consumption sits directly within the NPB 2018 framework. The 5% biodiesel blending target specifically addresses diesel use, while CBG and solar alternatives address irrigation pump demand. Understanding these policy instruments is essential for Mains answers on energy security and agricultural input costs.

Compressed Biogas (CBG) and the SATAT Scheme

Compressed Biogas (CBG) is biogas (primarily methane) produced from organic waste — including agricultural residue, cattle dung, municipal solid waste, and sewage — that is compressed for use as a transportation and cooking fuel. India's SATAT (Sustainable Alternative Towards Affordable Transportation) scheme, launched in October 2018 by the Ministry of Petroleum and Natural Gas, aims to establish 5,000 CBG plants with guaranteed offtake by oil marketing companies. CBG plants in rural areas can use agricultural stubble, paddy straw, and cattle dung as feedstock, creating a dual benefit: reducing crop residue burning and producing an alternative to diesel. The GOBAR-DHAN scheme (Galvanizing Organic Bio-Agro Resources-Dhan), under the Ministry of Jal Shakti / Swachh Bharat Mission, promotes cattle dung conversion to biogas at community and household level.

SATAT Scheme: launched October 2018; target of 5,000 CBG plants
As of 2025: approximately 108 CBG plants commissioned; 1,094 letters of intent active (below original target pace)
CBG feedstock potential: 190 million tonnes animal/poultry waste + 150 mt agricultural residue + 62 mt municipal solid waste + 50 mt from sewage treatment plants + 20 mt press mud
Estimated CBG production potential: 62 million metric tonnes
Compressed Biogas Obligation (CBO): 1% of CNG/PNG consumption (2026), 3% (2027), 4% (2028), 5% from 2028-29
GOBAR-DHAN: promotes community biogas from cattle dung; 2024-25 budget added 500 new plants
Over 5.1 million biogas plants installed in India; total capacity ~4.43 million cubic metres/day

Connection to this news: CBG from agricultural waste directly addresses the dual problem of crop residue burning and diesel dependence in rural areas. The SATAT scheme's progress and the new CBO mandates are the policy context in which expert recommendations for agricultural energy transition are being made.

PM-KUSUM — Solar Irrigation and Agricultural Energy Transition

The Pradhan Mantri Kisan Urja Suraksha evam Uthhaan Mahabhiyan (PM-KUSUM) scheme, launched in 2019 under the Ministry of New and Renewable Energy, is the primary programme for solarising agricultural irrigation. The scheme has three components: Component A (ground-mounted solar plants by farmers on barren land), Component B (standalone solar-powered agricultural pumps), and Component C (solarisation of grid-connected pumps). Central and State governments provide a combined subsidy of up to 60%, with the farmer contributing the remaining 40% — partly through bank loans. Converting diesel irrigation pumps to solar directly reduces diesel consumption and insulates farmers from fuel price volatility.

PM-KUSUM launched: 2019; nodal ministry: Ministry of New and Renewable Energy
Combined Central + State subsidy: up to 60% for solar pumps
Component B: standalone solar pumps (for areas without grid connectivity); directly replaces diesel pumps
Component C: solarisation of existing grid-connected agricultural pumps
Total diesel pumps in Indian agriculture: ~80 lakh (8 million) out of ~3 crore (30 million) total agricultural pumps
Diesel consumed by agricultural pumps alone: ~5.52 billion litres per annum

Connection to this news: PM-KUSUM is the most direct policy instrument for reducing diesel use in agriculture. Expert recommendations for scaling back diesel in kharif season specifically call for accelerating PM-KUSUM adoption alongside CBG deployment — two mutually reinforcing pathways under India's agricultural energy transition strategy.

Key Facts & Data

Agriculture is India's second-largest diesel consumer after transportation
Diesel-powered agricultural pumps: ~80 lakh (8 million) out of ~3 crore (30 million) total
Agricultural pump diesel consumption: ~5.52 billion litres per annum
National Policy on Biofuels 2018: ethanol blending target advanced to 20% by ESY 2025-26 (amended 2022)
Ethanol blending achieved by February 2025: ~17.98% in petrol
Biodiesel blending target: 5% in diesel by 2030
SATAT Scheme (2018): targets 5,000 CBG plants; ~108 commissioned as of 2025
Compressed Biogas Obligation: 1% of CNG/PNG (2026), rising to 5% from 2028-29
India's total biogas plant count: over 5.1 million installed
PM-KUSUM subsidy: up to 60% (Central + State combined) for solar irrigation pumps
Kharif season: sown June–July, harvested September–October; peak agricultural diesel demand period