Union Minister Nitin Gadkari has been a strong proponent of ethanol blending, framing it as a critical strategy for the welfare of Indian farmers and the nation's energy security, rather than a pursuit of profit. Gadkari has frequently highlighted the economic and environmental advantages of ethanol, advocating for its increased adoption across the country.
Gadkari has emphasized that his push for ethanol is driven by a vision to transform farmers from "Annadata" (food-giver) to "Urjadata" (energy-giver) and "Indhandata" (fuel-giver), ultimately aiming for them to become "Hydrogen-Data". He believes that increasing agriculture's contribution to India's GDP is crucial for generating more rural employment, given that agriculture currently accounts for only 12% of the GDP while 65% of the population depends on it.
The government's decision to promote ethanol production from corn has already shown positive results, with the market price of corn rising to ₹2,800 per quintal. This increase has significantly benefited farmers, who previously struggled with lower prices. Gadkari has stated that farmers have gained ₹45,000 crore due to the ethanol initiative. Moreover, maize cultivation has expanded, and oil marketing companies have contracted substantial quantities of maize-based ethanol.
Gadkari has also addressed concerns about the diversion of maize for biofuel production potentially affecting food and animal feed supplies. He has stressed the importance of balancing these needs and ensuring that the benefits of ethanol production are shared equitably. The minister has also linked the move to urgent pollution concerns, and has stated that a report has found Delhi residents will lose 10 years of life if this level of pollution continues.
India has already achieved nearly 20% ethanol blending, and is set to finalize standards for 27% ethanol blending in petrol. The ultimate goal is to achieve 100% ethanol blending, which would promote long-term sustainability for the sugar industry and reduce reliance on fuel imports. Gadkari has pointed out that India currently imports 85% of its crude oil requirements, costing the economy ₹22 lakh crore annually. Ethanol blending is seen as a way to reduce this dependence, save costs, and boost the domestic economy.
Gadkari has pushed back against criticisms of E20 petrol blending, dismissing them as a "paid campaign" designed to target him politically. He has clarified that mileage depends on various factors, and vehicles tuned for E20 can deliver better performance and lower emissions. The government maintains that E20 blending is a key step in cutting carbon emissions.
Gadkari has urged the Indian industry to accelerate the transition to biofuels, highlighting the multiple benefits of reducing crude oil imports, boosting rural incomes, cutting emissions, and transforming agriculture. He envisions a future where farmers not only grow food but also produce fuel for various sectors.