Pune: Union Minister for Road Transport and Highways Nitin Gadkari on Saturday pitched ethanol and other biofuels as the future growth engines of India’s sugar industry, urging mills to diversify beyond sugar production while assuring stakeholders that the Centre would soon address the sector’s pending concerns.
Speaking at the Sugar & Bioenergy Conference organised by West India Sugar Mills Association (WISMA) in Pune, Gadkari said the sugar industry must increasingly focus on ethanol, Bio-CNG, organic fertilisers and other value-added products to remain financially sustainable.
“Every sugar mill should focus on diversification and by-products. Only then will the sugar sector survive and flourish,” he said.
The minister said ethanol and biofuel production offer a significant opportunity to reduce India’s dependence on imported fossil fuels while creating additional income streams for farmers and sugar mills.
India currently spends nearly ₹23 lakh crore annually on crude oil and fuel imports, he noted.
“If this money goes into farmers’ pockets instead of being spent on imports, it will empower rural India and make India economically stronger,” Gadkari said.
He stressed that farmers should play a larger role in India’s energy transition.
“Farmers are not only annadatas. They should become energy producers and even ‘Hydrogendatas’ by contributing to the production of ethanol, biofuels and green energy,” he said.
According to Gadkari, the sugar sector is uniquely positioned to support the country’s clean-energy goals through ethanol, compressed biogas (CBG), biofuels and other renewable energy products derived from sugarcane and its by-products.
He called for greater utilisation of sugar industry residues such as press mud and spent wash for Bio-CNG and organic manure production, describing waste-to-wealth initiatives as critical for the industry’s future growth.
The minister also highlighted the potential of producing iso-butanol from sugarcane juice, saying the fuel could help reduce India’s diesel imports. He advocated the development of engines capable of operating on iso-butanol and urged Maharashtra to take the lead in adopting such technologies.
To further strengthen the biofuel ecosystem, Gadkari suggested that sugar mills should seek permission to establish their own ethanol and Bio-CNG retail outlets, creating new revenue streams and improving project viability.
While outlining a roadmap for the industry’s future, Gadkari also acknowledged the challenges facing the sector. He noted that the sugar industry directly impacts farmers and rural livelihoods across 179 Lok Sabha constituencies, making its sustainability critical for India’s rural economy.
He expressed concern over increasing migration from villages to cities and said creating employment and income opportunities through ethanol, bioenergy and allied sectors could help strengthen rural India.
The minister also pointed to irrigation challenges in regions such as Western Maharashtra and Vidarbha and stressed the need to improve water availability and agricultural productivity.
On policy matters, Gadkari assured industry representatives that the Centre was actively examining their concerns.
“All the expectations of the sugar sector will be addressed. We have recently held discussions with the concerned authorities and a decision will be made soon,” he said.
The conference brought together sugar mill representatives, industry experts and policymakers to discuss ethanol, bioenergy, renewable fuels and the long-term sustainability of India’s sugar industry.
