The market prices of crop has increase to Rs 2800 per quintal, after the Nitin Gadkari’s ethanol policy. The government decide to produce ethanol from corn. “A year and a half ago, the minimum support price of corn was ₹1,800 per quintal and market price was ₹1,200. Now the price has increased to ₹2,800 a quintal, benefitting farmers,” he said. Farmers, Gadkari added, are also benefiting from the ₹50,000-crore ethanol economy.
Why government approve Nitin Gadkari’s ethanol policy
In recent years, maize has become a major source for ethanol production. It make up over 42% of total output in the ethanol supply year 2023-24. As per Department of Agriculture and Farmers Welfare, maize cultivation grew by 9 lakh hectares in the 2025-26 kharif season. Oil marketing companies have contracted 484.35 crore litres of maize-based ethanol for ESY 2024-25.
However, concerns persist about competition with food and animal feed. Diverting maize for biofuel has disrupted the demand-supply balance. It turned India into a corn importer for the first time in decades.
Ethanol production make India self reliant country
Stressing the importance of ethanol production, Gadkari said, “Right now, about 85% of crude oil requirements come from imports. Fossil fuel imports worth ₹24 lakh crore are a challenge for our economy.” Nitin Gadkari’s policy also emphasised the need to protect the agriculture, rural, and tribal sectors, which together make up 65% of the population but contribute only 12% to India’s GDP.
At the event, JP Gupta, chair of the environment and climate change committee at PHDCCI, said India can become self-reliant in energy by producing ethanol from dent corn. Sadesh Sookraj, global decarbonisation advisor at IFC Washington, highlighted the role of corn in enabling a circular economy, from water positivity to bio-fertiliser generation, reducing greenhouse emissions and fertiliser imports.
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