Nitin Gadkari
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The Automotive Research Association of India (ARAI) is working to explore the possibility of blending 10% isobutanol with diesel, Union Minister for Transport Nitin Gadkari said Thursday.
Speaking at the annual conclave of the India Sugar and Bio-Energy Manufacturers Association (ISMA), Mr. Gadkari said whilst trials of blending one-tenth ethanol with diesel was not successful, other than the isobutanol blend, it was also being explored for a potential standalone use. Isobutanol is a alcoholic compound with flammable properties, and is commonly used as a solvent in varied industries including paints and coating. Mr. Gadkari’s announcement comes amidst the backlash the government has received for petrol blended with ethanol at 20%
He also said that tractor companies and agricultural equipment manufacturers, have expressed eagerness to explore a flex fuel combination of CNG and isobutanol at a recent meeting.
Corn as a blending agent
Enumerating success with use of corn for creating the ethanol blend, the transport minister enumerated farmers have earned more than ₹42,000 crore, with the prices spiking from ₹1,200/quintal to “about ₹2,600-2,800/quintal” since they commenced the blending paradigm.
Benefitting farmers
Also speaking at the event, Union Minister for Consumer Affairs, Food and Public Distribution Pralhad Joshi underlined that it has been the government’s endeavour to institute a constant policy to “protect and safeguard” interests and income of farmers and ensuring the viability of sugar mills. Mr. Joshi stated the government worked towards addressing issues as delayed payments and uncertain returns plaguing the industry. He added the blending paradigm has also ensured an additional source of income to farmers.
“More than 96% payment of the current sugar season have been cleared. [Also], cane dues are at an all-time low,” he informed.
Separately, Mr. Joshi urged biofuel producers to increase production and look to enter the global market to export ethanol. Further, he urged the industry to pursue “sustainable innovation and adopt new technologies to increase efficiencies, production and employment” alongside an expansion of single distilleries into multiple distilleries. The Food and Distribution Minister also sought diversification into exploring second and third generation ethanol from bamboo and other agricultural residues.
Ensuring better pricing
Gautam Goel, President at ISMA urged the government to consider, among other things, aligning the fair and remunerative price (FRP) of sugarcane in line with the rising (procurement) costs of cane. Furthermore, the industry body chief sought the government to consider revision in the minimum support price of sugarcane which has not increased since 2019 and increasing the permissible export quota of sugar 2 million tonnes in the sugar season 2025-26. About the latter, he argued, “This would help mills stride forward, secure better prices and acquire better market value.” Mr. Joshi assured the concerns would be look at and a decision would be taken keeping all interests in mind.
The Food and Distribution Minister stated that in the last eleven years, sugarcane production has increased 40% whilst sugar production has increased 58%. Furthermore, according to preliminary estimates of ISMA, the gross production of sugar in India is expected increase 20% on a year-over-year basis to touch 34.9 million tonnes this season.
Published – September 11, 2025 11:05 pm IST
