“Ethanol has to play a big role in India’s transportation economy since we have a fossil fuel import of around INR 22 lakh crore. Also, seeing the rise in air pollution, I don’t see we have to take a step backwards in terms of ethanol,” he added.Union Road Transport and Highways Minister Nitin Gadkari alleviated the concerns of ethanol producers in the country on Thursday, stating that they should not worry about competition from alternative biofuels such as methanol, biodiesel, and hydrogen.
“All these fuels have a place in the future energy landscape, and there is sufficient room for them to coexist and grow collectively,” Gadkari said. He emphasised the government’s commitment to developing a diversified biofuels sector, acknowledging the vast potential of various fuels to create a cleaner, more sustainable energy landscape.
“People often say you talk about EVs, ethanol, methanol, CNG, LNG, and hydrogen. What will be the fate of ethanol with the emergence of various green fuels? I believe that ethanol’s prospects will remain unaffected. Even if the production capacities of all these alternative green fuels are combined, India will still rely heavily on importing fossil fuels, leaving ample room for ethanol to continue growing. There is a lot of potential in this sector,” said Gadkari in Hindi while addressing the 4th Edition of the Sugar-Ethanol and Bio-Energy India Conference (SEIC) 2025, organised by ChiniMandi in Delhi.
“Ethanol has to play a big role in India’s transportation economy since we have a fossil fuel import of around INR 22 lakh crore. Also, seeing the rise in air pollution, I don’t see we have to take a step backwards in terms of ethanol,” he added.
Significant research is currently underway in biofuels and alternative fuels. “In a notable shift, public perception of EVs has transformed from skepticism—where people would humorously ask about pushing stalled EVs—to overwhelming demand, with buyers now facing substantial waiting lists, he said.
The ethanol sector is poised to make a significant economic impact. According to him, the sector has a potential to contribute approximately 3% to India’s Gross Domestic Product (GDP) in the future. “There are 178 parliamentary constituencies where farmers are connected with sugarcane production,” he said,
“One thing is very clear…the future of this industry is very, very good. Moving forward, India also plans to explore ethanol exports and create value-added products, further boosting the sector's growth and economic potential,” Gadkari noted.
Gadkari also shared his plans to meet with oil marketing companies (OMCs) after the Delhi elections to discuss reducing retail ethanol prices, which currently stand at INR 110 per litre - higher than petrol prices. Gadkari emphasised the need to rationalise ethanol prices, citing Indian Oil's decision to open ethanol pumps as a positive step.
Meanwhile, the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday, approved a proposal to revise the ethanol procurement price for public OMCs for the ethanol supply year 2024-25 (November-October) for the ethanol blending programme. It increased the administered ex-mill price of ethanol derived from C-heavy molasses, the last by-product of the sugar refining process, to INR 57.97 per litre from INR 56.58 in the previous supply year.
