EconomyThursday, 1 October 2026·The Hindu - National
Ethanol blending and agriculture diversification: key facts on India’s fuel policy and farmer earnings
On October 1, 2026, Nitin Gadkari said ethanol blending supports agriculture diversification and farmer income.
Key highlights
Direct fact
On October 1, 2026, Union Minister Nitin Gadkari said at the Bihar Investor Summit 2026 in Bihar that ethanol blending with petrol was meant to diversify agriculture, and he cited use of ethanol-blended fuel by 4 crore four-wheelers and 20 crore two-wheelers since 2022.
Key specifics
- Gadkari said the policy aims to turn farmers from “anna data” into “urja data” by linking agriculture with energy and power sectors.
- He claimed India imports conventional fuel worth ₹22 lakh crore, making fuel substitution an economic issue.
- He said ethanol made from corn has given additional earnings of up to ₹45,000 crore to farmers in Bihar and Uttar Pradesh.
- He also said aviation fuel has been made with rice straw, showing non-food biomass use.
- The statement was made at the Bihar Investor Summit 2026, with Bihar Chief Minister Samrat Choudhary also speaking at the event.
Exam lens
Question type: economy-policy and agriculture diversification, with figures like 4 crore, 20 crore, ₹22 lakh crore and ₹45,000 crore; TNPSC may ask why ethanol blending is linked to farm income and energy security.