New Delhi: Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday said that the use of maize for ethanol production has significantly raised farmer incomes and crop prices, especially in Uttar Pradesh and Bihar.
Speaking at the IFGE Green Transport Conclave, Gadkari said the shift towards ethanol production has helped improve price realisation for farmers and encouraged higher cultivation.
He noted that maize prices, which were earlier below the minimum support price of around Rs 1,800–1,850 per quintal, have seen a sharp rise after ethanol production from maize began. “About Rs 42,000 crore has gone into the pockets of farmers in Uttar Pradesh and Bihar,” he said.
The minister added that ethanol production has also improved the financial position of sugar mills, helping them clear dues to farmers. He said pending payments, which were earlier in the range of Rs 1.35–1.40 lakh crore, have eased as mills are now able to make timely payments.
Gadkari said the move to use maize for ethanol had earlier sparked debate over “food versus fuel,” but added that the current surplus in food production makes such conversion viable.
He also pointed out that the higher demand for maize has led to an increase in the area under cultivation.
Referring to state-level efforts, Gadkari said Haryana has introduced incentives of Rs 7,000 per acre to discourage paddy cultivation due to surplus production.
On clean mobility, he said technologies such as electric vehicles and flex-fuel engines can co-exist as India moves towards greener transport solutions.
