Govt asks biofuel producers to increase ethanol production, aim for exports

The Union Minister Pralhad Joshi on Thursday asked biofuel producers to increase ethanol production with an eye to export it to global markets
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Govt asks biofuel producers to increase ethanol production, aim for exportsRepresentative Image
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New Delhi: The Union Minister Pralhad Joshi on Thursday asked biofuel producers to increase ethanol production with an eye to export it to global markets.

Speaking at the India Sugar and Bio-Energy Conference 2025 here, the Minister of Consumer Affairs, Food and Public Distribution & New and Renewable Energy, highlighted India's progress in ethanol blending, energy security and rural prosperity.

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The two-day conference is being organised by Indian Sugar and Bio-energy Manufacturers Association (ISMA).

The sugar mills body, he said, is pivotal in driving sustainable growth and advancing India's circular bio-economy.

"With Sabka Saath, Sabka Vikas, Sabka Prayas, we are shaping a self-reliant and Viksit Bharat by 2047," Joshi said.

In 2014, he said India's ethanol blending in fuel was 1.5 per cent and today it is 20 per cent, a 13-fold increase in last 11 years.

The shift towards the ethanol blended fuel has led to energy security, significant economic and environmental benefits, he said.

The senior minister said that by reducing the dependence on the imported crude oil, India has saved foreign exchange worth Rs 1.44 lakh crore.

He further said that in the last decade, Indian sugar sector has undergone a remarkable transformation. At the heart of this transformation is the national policy on biofuels and ethanol blended programme with a strong focus on the promotion of biofuels, diversification of the product basket of sugar mills, thereby generating a new renewable source, he said.

Joshi further said the government initiatives have not only ensured the timely payments to the farmers, but also created an additional source of income for both mills and farmers.

In the last 11 years under the leadership of Prime Minister Shri Modi, sugarcane production has increased by 40 percent and sugar production has increased by 58 percent.

In 2014, he said, India's ethanol blending was 1.5 percent and today it is 20 percent, a 13-fold increase in last 11 years.

The shift towards the ethanol blended fuel has led to energy security, significant economic and environmental benefits, Joshi said.

"Going ahead, I would encourage the biofuel producers to increase the ethanol production and enter the global market to export the ethanol. Industry should focus on the sustainable innovation and adopt new technologies to increase the efficiency, production and employment...," he said, while highlighting measures taken by the government to increase ethanol production.

The minister also highlighted that the government has ensured domestic consumers get sugar at reasonable price and cane farmers are timely paid.

More than 96 percent of the cane payments of the current sugar season have been cleared, he added.

On Thursday, Indian Sugar and Bio-energy Manufacturers Association (ISMA) reaffirmed its projection of 349 lakh tonnes of gross sugar production in 2025-26 sugar season, in line with its July 2025 estimate, signalling stability in output expectations despite regional variations.

ISMA will reassess crop conditions in October 2025 and release its first advance estimate in October/November 2025.

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Speaking at the same event, food secretary Sanjeev Chopra said that 99 percent of sugarcane dues to farmers have been paid by sugar mills for 2023-24 season (October-September) and over 96 percent payament already made in current season, so far.

He also informed that the agriculture ministry is expected to come out with sugarcane production estimates for this year, based on which an opinion could be formed on sugar production.

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