Sugar Industry GDP Growth: Gadkari Aims for 3% Share

New Delhi, Jan 30 (PTI) The sugar industry has the potential to increase its share in the GDP to 3 per cent from the current 1-1.15 per cent, Union Minister Nitin Gadkari said on Thursday, while emphasising on the need to raise per acre production of sugarcane.

The Indian agriculture sector provides livelihood to about 42.3 per cent of the population and has a share of 18.2 per cent in the country's GDP at current prices.

"The Indian sugar industry has the potential to contribute 3 per cent in the country's GDP," he said.

Noting that the government has done a lot to encourage production of alternative fuel in India, the minister also said the government is now taking steps to encourage exports of ethanol.

The Union Cabinet on Wednesday approved a 3 per cent increase in the procurement price for ethanol made from C-heavy molasses to Rs 57.97 per litre for the 2024-25 supply year, while keeping rates unchanged for other feedstocks.

The price increase, aimed at boosting ethanol production from sugar industry byproducts, comes as India pushes to meet its accelerated target of 20 per cent ethanol blending in petrol by 2025-26.

Observing that the government's policy of controlling exports of sugar is both beneficial and harmful, the minister said there is need to re-look at the sugar industry with a new perspective.

"Because irrespective of party in power in the country, Indian policy makers have urban centric mindset.They are only concerned about inflation in four products --sugar, oil, wheat and rice," Gadkari, who is known for his frank views, said.

"Our MSP rates of some crops are higher than market price, still we are not changing our crop patters," he added.

Gadkari said that diversification of Indian agriculture and sugar industry has shown good results.

He also emphasised use of drone and new technology in the Indian industry.