Biofuels to Cut Oil Imports of ₹22 Lakh Crore, Says Nitin Gadkari

Union Road Transport and Highways Minister Nitin Gadkari on Wednesday highlighted the urgent need to connect India’s agricultural sector with the energy industry. Speaking at the India Bio-Energy and Tech Expo in Delhi, he emphasized that biofuels and ethanol are not just alternative energy sources but also tools to boost farmer income and reduce India’s heavy dependence on imported oil.

Farmers Hit by Global Price Control

Gadkari pointed out that Indian farmers often bear losses due to international price fluctuations. “The price of sugar is decided by Brazil, oil by Malaysia, corn by the US, and soybeans by Argentina. Because of this, farmers in rural and tribal regions do not get fair value for their produce,” he said.

Agriculture’s Low Share in GDP

Despite 65% of India’s population relying on agriculture, the sector contributes just 14% to GDP. Gadkari stressed that linking agriculture with the energy and power sectors is the need of the hour to secure the rural and tribal economy.

Boost from Ethanol Production

Sharing an example, he noted that when the government allowed ethanol production from maize, prices rose from ₹1,200 to ₹2,800 per quintal. Farmers, he said, earned an additional ₹45,000 crore through this move, proving how agriculture can drive the energy sector.

Reducing Pollution and Oil Imports

India currently imports fossil fuels worth ₹22 lakh crore annually, which Gadkari termed both an economic burden and a major source of pollution. Nearly 40% of India’s air pollution comes from transport fuel alone, he added. Promoting biofuels, therefore, is critical not only for reducing import bills but also for improving environmental health, especially in highly polluted cities like Delhi.

From Importer to Exporter of Energy

Looking ahead, Gadkari expressed confidence that India could emerge as a global leader in sustainable fuels. “Today we are energy importers, but the day is not far when India will become an energy exporter. That will be our greatest historical achievement,” he said.

Focus on Aviation Fuels

He further revealed that the government is also working on sustainable aviation fuels, aiming to expand the use of biofuels in the aviation sector as part of India’s clean energy transition.