Government asks biofuel producers to ramp up ethanol output with export ambitions

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Union Minister Pralhad Joshi has called on biofuel producers to boost ethanol production with the goal of exporting to global markets. Speaking at the India Sugar and Bio-Energy Conference 2025, Joshi highlighted India’s progress in ethanol blending, energy security, and rural prosperity.

The conference, organized by the Indian Sugar and Bio-energy Manufacturers Association (ISMA), saw Joshi praise the sugar mills’ pivotal role in advancing India’s circular bio-economy. “With Sabka Saath, Sabka Vikas, Sabka Prayas, we are shaping a self-reliant and Viksit Bharat by 2047,” he said.

Joshi noted that ethanol blending in fuel has increased thirteenfold over 11 years, from 1.5% in 2014 to 20% today. This shift has enhanced energy security, cut foreign exchange dependence by Rs 1.44 lakh crore, and brought significant economic and environmental benefits.

He emphasized that the government’s biofuel policies and ethanol blending program have transformed the sugar sector, promoting product diversification and creating additional income for mills and farmers. Since 2014, sugarcane production has risen 40% and sugar production 58%.

Joshi urged the industry to embrace sustainable innovation and new technologies to further increase production, efficiency, and employment. He also reassured that sugar is priced reasonably for consumers and cane farmers receive timely payments, with over 96% of cane payments for the current season cleared.

ISMA reaffirmed its projection of 349 lakh tonnes of sugar production for the 2025-26 season, with final crop assessments due in October-November 2025.

Food Secretary Sanjeev Chopra added that 99% of sugarcane dues for the 2023-24 season have been paid, with over 96% payments made so far in the current season, and upcoming production estimates will inform future projections.

Ethanol production capacity has surged more than fourfold to 1,810 crore litres over the past 11 years, marking a milestone in India’s clean energy transition and rural economic growth.

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