Gadkari pushes ethanol exports after India hits 20% blending milestone

From surplus production to export push, Gadkari says biofuels can transform India’s economy

India’s ethanol journey has crossed a major milestone, hitting the 20 percent blending target in petrol, five years ahead of schedule. Now, Road Transport and Highways Minister Nitin Gadkari says the next step is to export surplus ethanol, positioning it as a new frontier in India’s green economy.

“It is the time for India’s futuristic development. We need to reduce imports and increase exports. With surplus ethanol production, it is now the requirement of the country that we export ethanol,” Gadkari said while addressing the 2nd International Conference and Exhibition on Bioenergy and Technologies in New Delhi as per a report by ANI.

India’s ethanol production capacity stood at 1,822 crore litres annually as of June 2025, built on both sugarcane molasses and grain-based feedstocks. In the current Ethanol Supply Year (2024–25), the country has already averaged 19.05 percent blending as of July.

Farmers earn more, stubble becomes fuel

Gadkari underlined that ethanol policies have boosted farmer incomes, citing Brazil’s success with corn-based ethanol. “Farmers now earn Rs 45,000 crore more annually because of ethanol policies. Diversifying agriculture towards energy is the need of the hour,” he said.

He also pointed to India’s move to convert rice straw into ethanol and bio-CNG, tackling stubble burning that worsens Delhi’s winter pollution. “With 500 plants under development, rice straw will no longer be waste but a source of energy,” Gadkari added.

Flex-fuel cars, bio-bitumen roads, and green hydrogen

The minister listed innovations already underway:

Flex-fuel vehicles being rolled out by Toyota, Tata, Mahindra, Suzuki, Hyundai, and tractor manufacturers.
Bio-bitumen roads and ethanol-powered generators tested successfully.
Pilot projects in green hydrogen and sustainable aviation fuel.

“Nearly 40 percent of India’s air pollution is caused by transport fuels. At the same time, we import fossil fuels worth Rs 22 lakh crore annually. The sky is the limit for India’s biofuel future,” Gadkari said.

Gadkari fires back at critics: 'Petroleum lobby spreading lies'

The ethanol push hasn’t been free from controversy. Concerns have been raised over engine damage, reduced fuel efficiency, and food security risks. But Gadkari has dismissed them outright, calling it misinformation fueled by vested interests.

“This is completely false. We have done trials on old cars. In Brazil they do 27 percent blending but there have been no complaints. There are some people in the petroleum lobby who are spreading this… we have verified everything on technical grounds,” he said in an interview with Moneycontrol.

The remarks come weeks after the Supreme Court dismissed a PIL seeking mandatory ethanol-free petrol at fuel stations. The Centre had opposed the plea, calling it an attempt to undermine national policy.

“My brain is worth Rs 200 crore a month”

Earlier in September, Gadkari took a swipe at critics questioning his ethanol advocacy. Speaking in Nagpur, he said, “You think I am doing this for money? My brain is worth Rs 200 crore a month. I am not a wheeler-dealer. These ideas are for farmers, not for profit”.

He also warned against divisive politics, recalling Vidarbha’s farmer suicides. “Nearly 10,000 farmer suicides in Vidarbha are a matter of deep shame. Our efforts will continue until farmers achieve prosperity,” he added.