Union Food Minister Pralhad Joshi has urged sugar mills to step up ethanol production, saying the fuel could also be exported to international markets. According to reports by The Hindu Businessline, mills have been pressing for a price hike, but Joshi said the government would decide at the right time after balancing the interests of farmers, consumers, and industry.
Ethanol blending gains
Addressing the India Sugar and Bio-Energy Conference, organised by the Indian Sugar and Bio-energy Manufacturers Association (ISMA), Joshi said ethanol blending with petrol had risen from 1.5 per cent in 2014 to 20 per cent this year, saving about ₹1.44 lakh crore in foreign exchange. He added that the biofuel policy had enabled mills to diversify and ensured timely payments to farmers.Food Secretary Sanjeev Chopra said 99 per cent of sugarcane dues for 2023–24 had been paid and over 96 per cent cleared for the current season.
Industry projections
ISMA reiterated its forecast of 34.9 million tonnes of gross sugar output for 2025–26 and said 4.5–5 million tonnes could be diverted to ethanol. The association sought approval to export 2 million tonnes of sugar.
Chopra said fresh estimates of sugarcane production would be released soon, based on digital crop surveys backed by physical verification.
Diesel blending trials
Road Transport and Highways Minister Nitin Gadkari told the conference that efforts to blend ethanol with diesel had not yet succeeded and that experiments were continuing.Separately, Chopra said the government had cleared the sale of three million tonnes of wheat from its stocks through auction until March 2026.
