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

May 08, 2025

Print This Article Share it With Friends

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

Related articles

Gadkari urges biofuel revolution to cut fossil fuel imports and boost rural economy (Daiji World)
Govt allocates 2.8 MT of rice at subsidised rate for ethanol from surplus stock (Financial Express)
Nitin Gadkari calls for biofuel revolution to cut imports, boost rural economy (Admedabad Mirror)
Food vs fuel: Surge in ethanol blending and its impact on sugar prices -- Will the increased diversion of sugar for ethanol blending reduce its availability for direct consumption? (The Hindu)

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

Excerpt from Admedabad Mirror: 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.

...

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. READ MORE

Excerpt from The Hindu: India is looking to increase the ethanol-blending ratio in petrol to 30% to further cut down on fossil fuel consumption, as it has met its previous target of 20% in 2025, well ahead of schedule. This would require an increase in the diversion of sugar, produced from sugarcane and other sources, for ethanol production. However, sugarcane production has been on the decline since 2022, so much so that on Thursday, the Centre approved a hike in the Fair Remunerative Price for the crop to protect the interests of farmers. Consequently, the price of sugar has risen too, pinching the pockets of consumers.

Will the increased diversion of sugar for ethanol blending further reduce its availability for direct consumption and push prices even higher?

...

A slate of components has influenced lower production of sugarcane over the recent years, such as red-rot disease among crops in major sugar-producing States, deficient rains, and problems with the flowering of crops.

...

Ethanol blending adds to the price pressure by diverting a portion of the sugar. Government data show a rapid increase in the amount of sugarcane-based ethanol supplied for blending over the past decade, going from about 40 crore litres in FY14 to nearly 670 crore litres in FY24 (Chart 3). The practice is lauded for its sustainability-related benefits as well as its potential to reduce India’s dependence on oil imports.

...

The Centre has been implementing a long-term Ethanol Blending Programme (EBP) since the start of the 2000s, which allowed for a stagnant, then gradually increasing supply of ethanol. Initially, as a means of ensuring adequate availability of sugar for domestic consumption, the government banned the use of sugarcane juice, sugar syrup, and B-heavy molasses for ethanol production. This ban was lifted later, which explains the surge in supply in recent years.

A commensurate increase can be seen in the rate at which ethanol was blended with petrol over the years. Chart 4 shows the ethanol blending rate over the last 10 years. From just over 1.5% in FY14, the rate of ethanol blending has surged to 20% in FY25. The ethanol blending ratio surged due to a combination of a consistent increase in sugar diverted for ethanol production and a drastic reduction in the goods and services tax imposed on ethanol meant for the EBP.

...

With the availability of sugarcane impacted this year, reports show that the government is looking at grains to make up for the shortfall. Moreover, with sugar prices rising, the choice between food and fuel looms. READ MORE

Tags

Transportation Fuels Policy Sustainability Solutions rice straw/paddy straw rice markets/sales Jetfuel (Sustainable Aviation Fuel (SAF)) India history ethanol/bioethanol energy security energy independence currency/foreign exchange policy corn/maize Compressed Natural Gas (CNG/R-CNG/bioCNG) Brazil BioRefineries/Renewable Fuel Production bioproducts biomaterials biomass biomass Biofuel bioenergy bioeconomy BioChemicals/Renewable Chemicals bamboo Aviation Fuel/Sustainable Aviation Fuel (SAF) asphalt/bitumen air quality Air Pollution Policy Agricultural waste/residue Agricultural Policy food vs fuel food policy

Comments are closed.