Nitin Gadkari Calls for Biofuel Revolution to Cut Imports, Boost Rural Economy

by IANS (Prokeraia) Union Minister of Road Transport and Highways, Nitin Gadkari, on Thursday advocated for a nation-wide biofuel revolution, calling it a "once-in-a-century opportunity" to transform India's rural economy, reduce its massive fossil fuel imports and tackle air pollution.

Speaking at the 'International Summit Expo on Bioenergy Value Chain' here, the Union Minister said the time has come to turn agricultural waste, crop residue, bamboo and biomass into green fuel and value-added products.

Gadkari highlighted the urgent need to cut India's Rs 22 lakh crore fossil fuel import bill and reduce pollution caused by burning crop waste and vehicle emissions.

"India must shift from being an energy importer to becoming an energy exporter, which he believes is achievable through sustainable bioenergy initiatives," Gadkari mentioned.

The minister praised Brazil for its success with aviation biofuel and noted that India too has begun implementing similar fuel alternatives at its airports.

"Sustainable aviation fuel is a huge market for the future," he said, emphasising the need for quality research and economically viable technologies.

Addressing the issue of stubble burning in north India, Gadkari said it should not be seen as a problem but as an opportunity.

"Rice straw from Punjab and Haryana can be converted into bio-CNG, ethanol, bio-bitumen, and even aviation fuel," he said.

He pointed to Indian Oil's Manpur project as a successful example, which processes two lakh tonnes of crop waste into high-value fuel every year.

He also suggested turning India's vast stretches of wasteland – 70 per cent of which is unproductive -- into bamboo plantations for energy production.

Gadkari revealed that NTPC has already agreed to buy bamboo as white coal for thermal power plants, offering a new income stream for farmers and rural entrepreneurs.

"Agriculture must be diversified towards the energy and power sector," he said, adding that higher crop prices from ethanol demand -- like the rise in corn prices from Rs 1,200 to Rs 2,600 per quintal -- are proof that biofuels can boost farm income.

"Without economic viability in agriculture, we cannot achieve real growth," he stressed. READ MORE

Excerpt from Financial Express: To reduce stockpile, the food ministry has allocated 2.8 million tonne (MT) from the central pool stock to be supplied to distilleries for ethanol production at subsidised rate of Rs 2250/quintal.

Sources told FE that the new allocation is in addition to 2.4 MT of grain currently being supplied to biofuel manufacturers from the surplus rice stocks of Food Corporation of India (FCI).

FCI has projected economic cost of rice including minimum support price (MSP), storage, transportation and other costs at Rs 4173/quintal for 2025-26. Currently the corporation holds 61 MT of rice which include grain receivable from millers against the buffer of only 13.58 MT for April 1.

The supplies of subsidised rice under the open market sale scheme of FCI to ethanol makers would be till October 31, 2025

“With the additional allocation of rice, the raw material supplies to units would be sufficient,”Abhinav Singal, treasurer, Grain Ethanol Manufacturers Association (GEMA), told FE. READ MORE