Transport Minister Nitin Gadkari Wants Ethanol To Be Exported, Praises E20 Petrol Blending

Union Minister for Road Transport and Highways Nitin Gadkari has said the time has come to start exporting ethanol. He made the remark at the second International Conference and Exhibition on Bioenergy and Technologies in New Delhi.

The call follows the programme’s early progress. The country has met the 20 percent petrol blending target five years ahead of the original 2030 timeline. With production running ahead of current blending needs, the minister wants policy to shift from only import substitution to also earning export revenue.

Gadkari framed ethanol as part of a larger economic plan. The idea is simple. Reduce crude imports, keep value within the country, and sell surplus where it finds a market. He also linked the biofuel push to rural incomes and jobs, saying the ecosystem now supports farmers and small industries across sugar and grain belts.

Ethanol Production on the rise

The ethanol production capacity has climbed to about 1,822 crore litres a year as of June 2025. Supply comes from both sugarcane molasses and grain feedstocks such as maize and rice. On the consumption side, the Ethanol Blended with Petrol programme has already reached an average 19.05 percent blend in the Ethanol Supply Year 2024 to 2025 by July 2025. The headline milestone is the 20 percent blend target being reached five years early.

There is also a farm income angle. According to the minister, ethanol policies are putting an additional Rs 45,000 crore a year into the hands of agricultural communities. The programme is not built on a single crop. While sugarcane remains important, grain ethanol has grown, which spreads risk across seasons and regions.

The government is also pushing residue based fuels. Work is underway to convert rice straw into ethanol and bio compressed natural gas. About 500 processing plants are at different stages of development for this stream.

These figures explain why exports are being discussed now. If capacity stays high and blending needs are met, surplus litres will need outlets. Moving some of that to overseas buyers could keep plants running at steady rates and help pay down investments already made by the industry.

Benefits the minister highlights

Gadkari positions ethanol as a multi goal solution. He says the programme cuts petroleum import bills, raises farmer incomes, supports rural jobs, and helps air quality by tackling stubble burning through residue based fuels. He also credits global examples, especially Brazil, for showing what steady policy can achieve. The emphasis now is on corn based ethanol as well, which has opened new demand for maize.

Another claimed benefit is value addition. Instead of exporting raw farm produce, the plan aims to export processed biofuel. A litre of fuel sold abroad can bring in more value than the same crops exported without processing. With blending infrastructure already built and quality standards in place, the minister argues the sector is better prepared to serve both domestic and overseas markets.

Industry reaction has been broadly positive. Producers see exports as a way to manage cycles in sugar output, grain arrivals, and petrol demand. If domestic blending plateaus in a quarter or two, export orders could smooth cash flows. Policymakers also see alignment with global trends as more countries set targets to cut transport emissions and diversify fuel sources.

What needs careful handling

The export push will still need tight coordination. Petroleum and finance ministries must set clear export rules, quality protocols, and tax treatment. Pricing will matter.

If international prices are soft, exporters will need a policy that does not harm domestic supply or raise pump prices. Contract structures should ensure local blending targets are fulfilled first before surplus moves out.

Feedstock balance is another concern. Sugarcane is water intensive. Expanding acreage without efficiency gains could strain local resources in some regions. Grain diversion must be planned so it does not distort food markets in poor harvest years. A diversified feedstock map and strong storage buffers can limit these risks.

There is also the technology and logistics layer. Export grade fuel requires consistent specs, reliable testing, and port infrastructure for bulk movement. Plants handling rice straw and other residues must hit scale and prove steady operations. The 500 projects under development will need time to mature, train manpower, and sort supply chains from farm to plant to tanker.