India’s E20 petrol policy, despite aiming to compensate farmers, is criticized for its high cost and reliance on water-intensive sugarcane. The author argues it burdens consumers, overlooks resource efficiency, and fails to address comprehensive farmer income issues. The policy disproportionately favors sugarcane, neglecting more sustainable alternatives like maize, millets, sweet sorghum, and lignocellulosic biomass for 2G ethanol. Proactive policymaking is advocated to incentivize 2G ethanol from agricultural residues, addressing stubble burning and avoiding competition with food crops. The author contends import substitution is not an excuse for consumers paying more for less efficient fuel.