Gadkari urges sugar cooperatives to diversify into ethanol and CBG
Road Transport Minister Nitin Gadkari called on cooperative sugar mills to reduce reliance on sugar and build revenue from ethanol, compressed biogas and other by-products, citing India’s higher sugar production costs versus Brazil.
What happened
National Federation of Cooperative Sugar Factories · Minister Nitin Gadkari urged Indian cooperative sugar mills to reduce dependence on sugar and expand
Key facts
- ₹50,000 crore-₹60,000 crore annual value from 1% additional sugar recovery
- ₹600/quintal potential cane payment
- ₹23/kg sugar production cost in Brazil
- ₹33-34/kg sugar production cost in India
- 280-300 lakh tonnes annual Indian sugar demand
What changed
Minister Nitin Gadkari urged Indian cooperative sugar mills to reduce dependence on sugar and expand ethanol, compressed biogas and other by-products, citing Brazil-driven sugar pricing and government support for CBG projects.
Why this matters
Sugar cooperative operators should reduce single-commodity exposure by prioritizing ethanol, compressed biogas and by-product capacity that can monetize surplus cane and offset India’s sugar-cost disadvantage.
What to watch
- Government ethanol procurement prices, blending targets and any restrictions on diversion of sugar or molasses to ethanol.
- New CBG purchase agreements, SATAT-linked offtake contracts, and state-level subsidies or viability-gap funding.
- Sugar output estimates, monsoon performance, cane acreage and domestic sugar inventory levels.
- Capex announcements for distilleries, CBG plants, compressed biogas bottling and bagasse-based power facilities.
- Movement in Brazilian versus Indian sugar production costs and export competitiveness.
Also reported by
- BL · Consumer & Economy — Same time