Outlook Business Desk
Union Road Transport and Highways Minister Nitin Gadkari, speaking at an event, urged sugar producers to diversify into ethanol-diesel blending, green hydrogen, and allied products to manage India’s growing sugar surplus.
Gadkari, speaking at the Indian Sugar Manufacturers’ Association’s (ISMA) ‘The Indian Sugar & Bio-Energy Conference 2025’, pointed out that India’s sugar output already exceeds domestic demand. He warned that if global production, especially in Brazil, rises, the resulting surplus could pose serious difficulties for the sugar sector and impact farmers’ incomes.
The minister also highlighted that sugar production costs have nearly matched market prices, limiting profit margins. He warned that without diversifying into ethanol, green energy, and allied products, the growing surplus could severely strain the financial health of India’s sugar industry.
Gadkari stressed that India spends ₹22 lakh crore each year on fossil fuel imports, which adds to pollution. He stressed that promoting alternatives, such as bio-CNG and ethanol-blended petrol is crucial for a self-reliant and environmentally sustainable energy future.
Gadkari emphasised that farmers should be recognised not just as 'annadata' (food providers) but also as 'urjadata' (energy producers). Producing ethanol from crops such as corn has already raised farmers’ earnings, highlighting the benefits of energy-focused agriculture.
Ethanol production from sugarcane and broken rice offers farmers an extra source of income. Gadkari emphasised that encouraging these initiatives will lower India’s reliance on fossil fuel imports and contribute to a more sustainable and environmentally friendly energy future.
Gadkari also shared his goal of positioning India’s automobile industry as the world’s largest within five years. The sector has expanded from ₹14 lakh crore to ₹22 lakh crore during his tenure.
Presently, the US automobile industry leads at ₹78 lakh crore, followed by China at ₹47 lakh crore, with India at ₹22 lakh crore. Gadkari aims to close this gap.