Sugar industry can boost GDP contribution to 3%, says Union Minister Nitin Gadkari
New Delhi: Union Minister Nitin Gadkari said Thursday that the sugar industry has the potential to triple its contribution to India’s Gross Domestic Product (GDP), reaching 3% from its current 1-1.15% share, reports Business Standard. He stressed the importance of increasing sugarcane production per acre to achieve this goal.
Currently, the agriculture sector employs about 42.3% of India’s population and contributes 18.2% to the nation’s GDP. Gadkari believes the sugar industry can significantly boost its economic impact.
The Minister highlighted the government’s efforts to promote alternative fuels, including ethanol, and announced that the government is now working to encourage ethanol exports.
On Wednesday, the Union Cabinet approved a 3% increase in the price the government pays for ethanol produced from C-heavy molasses, setting it at ₹57.97 per litre for the 2024-25 supply year. Ethanol prices made from other sources remain unchanged. This price adjustment aims to increase ethanol production from sugar industry byproducts, supporting India’s goal of blending 20% ethanol with gasoline by 2025-26.
Gadkari acknowledged the mixed effects of the government’s sugar export controls, stating that the sugar industry needs a fresh perspective.
“Regardless of which political party is in power, Indian policymakers tend to focus on urban concerns. They primarily worry about inflation in four key products: sugar, oil, wheat, and rice,” Gadkari commented.
He also pointed out the issue of crop patterns, noting, “Our minimum support prices (MSPs) for some crops are higher than market prices, yet we’re not changing our crop patterns.”
Gadkari emphasized the positive outcomes of diversifying Indian agriculture and the sugar industry. He also advocated for the use of drones and other new technologies in the industry.
