India targets 20% ethanol blending by next year

The Indian government aims to achieve 20% ethanol blending by next year, with half of the ethanol sourced from sugar and the other half from grains.

The government’s challenge is balancing the interests of all stakeholders, particularly in the sugar sector. Consumers seek stable prices, while farmers demand higher Fair and Remunerative Prices (FRP).

Government’s commitment to the growth of the farm sector and farmers, reflected in the substantial increase in the Agriculture and Allied Fund allocation, which has risen from ₹15,000 crore in 2013-14 to ₹1.5 lakh crore currently.

The government employs an institutionalised mechanism to monitor food prices, involving a weekly review of commodity prices by a committee of secretaries, with subsequent briefings to ministers.

Prices of pulses like Tur and Urad remain high, and the government is closely monitoring agricultural inflation. Any easing of agricultural restrictions on commodities such as wheat, rice, and sugar will be considered at the appropriate time.

Crop policies are designed to avoid surprises for the industry, though any unexpected policy changes are made in the interest of the economy and consumers. He addressed the volatility in the prices of tomatoes, potatoes, and onions, noting that much of these crops are harvested in winter, leading to a consumption period of 7-8 months. The government is proposing the creation of vegetable clusters near urban areas with the help of Farmer Producer Organizations (FPOs), expecting implementation in a few months.

Government’s top priorities – promoting crop diversification to reduce ecological damage and achieving self-reliance in key crops like oilseeds and pulses.