Food Minister urges sugar mills to raise ethanol production, aim for export
Union minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi
Union Food Minister Pralhad Joshi has asked sugar mills, which demanded increase in ethanol prices, to raise the production of the biofuel with an eye to export it to global markets. He assured the millers that the government would take the right decision at appropriate time keeping interests of all the three stakeholders – sugarcane farmers, consumers and mills.
Speaking at the India Sugar and Bio-Energy Conference on Thursday, organised by Indian Sugar and Bio-energy Manufacturers Association (ISMA), Joshi highlighted India’s progress in ethanol blending, energy security and rural prosperity.
Ethanol blending with petrol has surged from 1.5 per cent in 2014 to 20 per cent today, marking a 13-fold increase over 11 years. This shift has saved ₹1.44 lakh crore in foreign exchange and delivered significant economic and environmental benefits.
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.
Farmer dues cleared
He added that government efforts have ensured timely payments to farmers and boosted earnings for both growers and mills.
Speakign at the same event, Food Secretary Sanjeev Chopra said that 99 per cent of sugarcane dues for the 2023–24 season have been paid, and over 96 per cent of payments have already been made for the current season.
Addressing the event, Road Transport and Highways Minister Nitin Gadkari said the government has been trying to mix ethanol with diesel, but that programme is not yet successful and experiments are ongoing to find out sustainable biofuel blending programme in diesel.
ISMA reaffirmed its July projection of 34.9 million tonnes (mt) of gross sugar production for the 2025–26 season. It also highlighted the potential to divert 4.5–5 mt of sugar (in sucrose terms) towards ethanol and requested permission to export 2 mt.
Digital crop surveys
Chopra said 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. He also said that the Ministry has been conducting digital crop surveys, validating those data with physical verification which is going to strengthen accuracy of crops production estimates in coming years.
Chopra also hinted at the possible start of wheat sales from government stocks, with 3 mt approved for auction until March 31, 2026.
Published on September 11, 2025
