Farmer organisations have extended support for India’s ethanol expansion programme but have called for a farmer-centric policy framework that ensures cultivators receive a larger share of the economic benefits. The issue came into focus during a meeting between Union Agriculture and Farmers’ Welfare Minister Shivraj Singh Chouhan and a delegation of the All India Kisan Coordination Committee (AIKCC) at Krishi Bhavan. The discussions covered ethanol, minimum support price (MSP), farm incomes, agricultural markets, crop diversification and the proposed National Agriculture Policy.
Farmer leaders told the minister that they are not opposed to ethanol production and believe the sector can create additional markets for agricultural produce. According to the delegation, expanding ethanol demand could provide farmers growing sugarcane, maize and rice with an additional market beyond traditional mandis. This could improve demand for farm produce, support better price discovery and reduce the risk of unsold stocks, particularly when farmers face storage and market-access challenges.
The delegation, however, stressed that ethanol expansion must directly benefit farmers. Farmer organisations want safeguards to ensure that the value generated through the ethanol supply chain is not disproportionately captured by intermediaries, processors or large companies. They said fair prices for feedstock crops and transparent procurement mechanisms would be essential for building long-term support for the ethanol programme among cultivators.
Farmer representatives from several states, including Punjab, Haryana, Maharashtra, Uttar Pradesh, Madhya Pradesh, Telangana and Tamil Nadu, participated in the discussions. The participation of organisations from different agricultural regions highlighted the growing importance of ethanol policy across diverse crop and farming systems, each facing different challenges related to water availability, crop economics and market access.
The meeting also raised concerns over misinformation about ethanol circulating on social media and other platforms. Farmer leaders urged the Agriculture Ministry to work more closely with farmer organisations and local networks to spread accurate information about the programme. They suggested using short videos, digital campaigns and village-level awareness programmes, particularly to reach younger farmers and explain the potential economic and agricultural benefits of ethanol.
According to the farmer delegation, ethanol could also support crop diversification in regions facing water stress. By creating demand for crops such as maize and other suitable feedstocks, the ethanol economy could encourage farmers to consider alternatives to water-intensive crops. This could connect India’s biofuel strategy with broader efforts to improve climate resilience and promote more sustainable agricultural practices.
Chouhan reportedly assured the delegation that the government wants the benefits of the ethanol programme to reach all sections of the value chain, with farmers receiving the largest possible share. He described farmers as important partners in policymaking and said their views would be considered while reviewing policies related to ethanol, agricultural markets and farm incomes.
The Agriculture Minister also highlighted the potential of ethanol to contribute to both India’s energy security and farmers’ incomes. He said the government would consider the concerns of farmers growing sugarcane, maize, rice and other ethanol feedstock crops while reviewing the policy framework. The government is also expected to rely on scientific studies and technical evidence to address misinformation and improve public understanding of ethanol.
The meeting is significant as India’s ethanol programme is increasingly being viewed not only as an energy-security initiative but also as a potential source of additional demand for agricultural commodities. For farmers, a reliable ethanol market could provide an alternative channel for selling crops and potentially reduce dependence on volatile mandi prices. However, policymakers will need to balance ethanol demand with food security, crop diversification, water availability and fair returns to farmers.
The AIKCC representatives said they would take the government’s message to villages and support efforts to create greater awareness about ethanol. Such outreach could become important as India expands its biofuel programme and seeks wider acceptance among farmers. The latest discussions indicate that the future of ethanol policy will increasingly depend on how effectively it connects energy security with farmer incomes, agricultural sustainability and rural market opportunities.
