Union minister Nitin Gadkari has urged faster diversification of agriculture into energy, calling for diesel blending with isobutanol. Building on ethanol’s success, he highlighted India’s surplus grain production, rising farmer incomes, and the sugar industry’s revival through biofuels. The proposal, once cleared by the Cabinet, could accelerate India’s shift to a sustainable bio-economy backed by Praj Industries’ BioVerse initiative.
After India’s success in achieving 20% ethanol blending in petrol—five years ahead of schedule—Union minister Nitin Gadkari has set his sights on diesel. Speaking at a Praj Industries event in Pune, he proposed blending 10% isobutanol under the biodiesel programme, noting that diesel consumption in India is two to three times higher than petrol.
Gadkari stressed that research, development, and standardisation of isobutanol are already underway. Once complete, the proposal will be placed before the Prime Minister and the Cabinet for final approval.
Earlier debates on “food versus fuel” are now easing, with India producing surpluses of rice, wheat, sugar, and corn. Many states, including Punjab, have excess grain stockpiles stored in open spaces like railway platforms. Gadkari noted that converting this surplus into biofuels has already improved farm incomes and stabilised crop markets.
For instance, corn prices have risen from an MSP of ₹1,800 (and market price of ₹1,200) to as high as ₹2,600–2,800, with cultivation areas doubling or tripling in states like Bihar and Uttar Pradesh. Ethanol production has also rescued India’s sugar sector, ensuring timely payments to farmers and preventing industry collapse.
At the same event, Praj Industries’ executive chairman Pramod Chaudhari unveiled Praj Bioversea platform to connect bio-economy stakeholders and accelerate growth. The initiative will foster innovation across the entire value chain—feedstocks, technologies, biofuel products, and vehicle applications.
Partners include Toyota Kirloskar Motor, Hero MotoCorp, Alfa Laval, the Automotive Research Association of India, and others—signalling industry-wide momentum for biofuel adoption.
With India already ahead in ethanol blending, expanding the programme to diesel could significantly reduce fossil fuel dependence, boost rural incomes, and accelerate the transition to a low-carbon economy. Gadkari’s call underscores a pivotal moment in India’s clean energy journey—where agriculture and technology converge to power the nation’s future.