Nitin Gadkari said using maize for ethanol has boosted farmer incomes and crop prices. It has helped sugar mills pay farmers on time and put Rs 42,000 crore in their pockets, while also encouraging increased maize cultivation, he added.
Ethanol Production Boosts Farmer Incomes
Union Minister for Road Transport and Highways Nitin Gadkari on Tuesday said that the use of maize for ethanol production has significantly boosted farmer incomes and crop prices, while also encouraging increased cultivation. Addressing the gathering at IFGE's Green Transport Conclave: Accelerating Towards the Future of Sustainable and Green Mobility, Gadkari highlighted the positive impact of ethanol blending on the agriculture sector.
Improved Payments from Sugar Mills
He said that earlier, sugar mills had pending dues of around Rs 1.35 lakh crore to Rs 1.40 lakh crore to farmers, but the situation has improved with ethanol production, enabling timely payments. "Now sugar mills are paying farmers because of ethanol," he said.
Increased Maize Prices and Cultivation
Gadkari also recalled discussions around the use of maize for ethanol production, noting that there was significant debate on the issue of "food versus fuel." He pointed out that earlier, the minimum support price (MSP) for maize was around Rs 1,800-1,850, while the market price was only Rs 1,200, effectively resulting in a subsidy of Rs 600. He said that the decision to use maize for ethanol helped improve price realisation for farmers. "In Uttar Pradesh and Bihar, maize prices increased significantly, and about Rs 42,000 crore went into the pockets of farmers because ethanol production from maize began," he stated. According to the minister, this also led to an increase in the cultivation area under maize.
Converting Surplus Food into Energy
Highlighting state-level initiatives, Gadkari said that Haryana, which had surplus rice production, introduced incentives of Rs 7,000 per acre/hectare to discourage farmers from growing rice. He emphasised that India currently has surplus food production, making it viable to convert excess agricultural produce into energy. "In today's situation, there is no problem in converting surplus food products into energy, because we have surplus," he said, adding that the country needs to adopt a fully integrated approach to agriculture.
Future of Clean Mobility
On clean mobility, the minister said there are no issues with adopting flex-fuel engines, adding that around 60 per cent of electricity is already coming from certain sources. He noted that both electric and flex-fuel technologies can co-exist as part of India's transition towards sustainable and green mobility. (ANI)
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