Union Road Transport and Highways Minister Nitin Gadkari on Friday said the future of India’s sugar industry may remain challenging unless sugar mills diversify into energy generation and alternative fuel production.
Speaking at an event in Satara during his two-day visit to western Maharashtra, Gadkari said sugar factories should focus more on ethanol, green hydrogen and other energy-related businesses to improve revenues and long-term sustainability.
‘Future of Sugar Industry Will Be Tough’
Gadkari said excessive dependence on sugar production may create financial difficulties for sugar mill operators in the future.
“The more sugar the mills produce, the more their owners will struggle,” he said while speaking about the current condition of the industry.
His remarks come at a time when the Centre has imposed restrictions on sugar exports, a move that has been criticised by opposition parties and farmer groups. Critics argue that export curbs could affect sugar prices and reduce returns for sugarcane farmers.
Ethanol Helped Sugar Mills Maintain Payments
The Union minister said ethanol production has provided financial support to sugar mills in recent years.
According to Gadkari, ethanol sales helped mills manage operations and continue payments to sugarcane farmers even as sugar stocks increased.
He said many mills are currently storing excess sugar in warehouses, leading to additional storage costs. Ethanol production, he added, has helped improve cash flow for the industry.
Gadkari Suggests Green Hydrogen, Isobutanol Expansion
Gadkari urged sugar mills to adopt new technologies and expand into alternative energy production.
He suggested that sugar factories should consider producing isobutanol and green hydrogen, along with increasing ethanol-related activities.
The minister also encouraged mills to open their own ethanol retail outlets, saying it could help generate additional revenue and create local employment opportunities.
Palkhi Route Project to Be Completed by December
During his Maharashtra visit, Gadkari also reviewed the progress of the Sant Dnyaneshwar and Sant Tukaram Palkhi route projects connecting Pune and Pandharpur.
He said the construction work is progressing at a satisfactory pace and the project is expected to be completed by the end of December.
