PM Modi highlighted India's ethanol push, particularly by sugarcane farmers in Uttar Pradesh, ahead of the 2027 Assembly elections.
Uttar Pradesh is claiming to be India's largest ethanol producer, with production increasing four-fold since 2017.
In 2025-26, Uttar Pradesh's ethanol production reached 187.80 crore litres, up from 42.70 crore litres in 2016-17.
The state government increased the State Advisory Price (SAP) for sugarcane by Rs 30 per quintal in October 2023 for the 2025-26 crushing season.
Detailed Insights:
Uttar Pradesh accounts for over 57% of India's sugarcane production, with cultivation area rising from 20.54 lakh hectares in 2016-17 to 28.61 lakh hectares in 2025-26.
The state has about 50 lakh sugarcane farmers who play a key role in about 80-100 Assembly seats in western and central Uttar Pradesh.
Increased ethanol production has helped sugar mills in Uttar Pradesh to make timely payments to farmers, addressing a long-standing issue.
Besides molasses, the government is exploring the use of maize and broken rice for ethanol production, with maize prices rising due to higher demand from distilleries.
Key Concepts Involved:
Ethanol: A renewable fuel produced from various plant materials, used as a gasoline additive.
State Advisory Price (SAP): The price at which state governments advise sugar mills to purchase sugarcane from farmers.