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Maize-to-Ethanol Boost Puts Rs 42,000 Crore in UP, Bihar Farmers' Pockets

Union Minister Nitin Gadkari stated that using maize for ethanol production has significantly increased farmer incomes and crop prices, particularly in Uttar Pradesh and Bihar. He highlighted that this initiative channeled approximately Rs 42,000 crore to farmers and improved price realization from previously subsidized levels. The move also helped clear pending dues from sugar mills to farmers by creating demand for ethanol. Gadkari emphasized that India's surplus food production makes converting agricultural produce into energy a viable strategy for sustainable mobility.

Key Points: Ethanol from Maize Lifts Farmer Incomes by Rs 42,000 Crore

  • Maize ethanol boosted farmer incomes
  • Crop prices rose significantly
  • Sugar mill dues cleared faster
  • Cultivation area for maize increased
  • Surplus food enables energy conversion
2 min read

UP, Bihar farmers gain Rs 42,000 crore as maize-to-ethanol lifts prices: Gadkari

Nitin Gadkari reveals how using maize for ethanol production raised prices and brought Rs 42,000 crore to farmers in Uttar Pradesh and Bihar.

"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. - Nitin Gadkari"

New Delhi, April 21

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.

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.

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.

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.

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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Reader Comments

S
Sarah B
While the income boost is commendable, the "food vs fuel" debate is real. We have surplus now, but climate change can affect yields. We need a balanced, long-term policy that doesn't compromise food security in a bad monsoon year.
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Ananya R
Rs 42,000 crore directly to farmers' pockets is a huge number! Hope this model is replicated for other crops and states. It shows how linking agriculture with industry (like ethanol for transport) can transform rural economies. 👏
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Vikram M
Good step, but the key is sustainability. What about the water footprint of maize? And will farmers get a fair price consistently, or will it fluctuate with oil prices? The policy framework needs to be robust.
K
Karthik V
The Haryana example of incentivizing shift from rice is smart. Punjab/Haryana need to save groundwater. Using surplus for ethanol makes sense for energy independence too. Bajra, jowar could be next? #GreenIndia
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Priya S
Timely payment is the biggest relief for any farmer. If ethanol demand ensures mills clear dues, that alone is a massive achievement. Hope the benefits reach the small and marginal farmers, not just the large ones.

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