Nitin Gadkari's 100% Ethanol Push Sends Sugar And Distillery Stocks Higher

Sugar and distillery stocks moved into positive territory on Wednesday after Nitin Gadkari, India's road transport and highways minister, made a case for pushing ethanol blending all the way to 100%, a level India has never been close to but one that Brazil has made work for decades.

Sugar mills with large distillery capacity can benefit from this move. Extra sugar can go into ethanol production.

On Wednesday, at 10:00 am, Praj Industries Ltd shares rose 2.80% to ₹374.40, and Balrampur Chini Mills Ltd shares gained 1.47% to ₹400.90. Additionally, Dwarikesh Sugar Industries shares added 1.01% to ₹28.04. Triveni Engineering and Industries Ltd and Shree Renuka Sugars Ltd also ticked higher through the early session.

What Gadkari Said

Speaking at the Indian Federation of Green Energy's Green Transport Conclave, Gadkari said India must move beyond its current 20% ethanol blending target and work toward E100, a full switch to ethanol-run vehicles, along the lines of what Brazil has already achieved.

He pointed to the West Asia conflict as proof that India's dependence on imported oil is both an economic and a strategic vulnerability.

India currently meets 87% of its oil needs through imports, spending roughly ₹22 lakh crore annually on fossil fuels. Gadkari argued that this level of exposure makes energy self-reliance a matter of national security.

The Current Situation

The nationwide rollout of E20 petrol, blended with 20% ethanol, was completed on 1 April 2026. Current vehicles can run on E20 with minor engine modifications. Moving to E85 or E100 would require a broader shift to flex fuel vehicles, which can operate on any blend of petrol and ethanol.

A draft notification for E85 fuel is in its final stages. Ethanol feedstock for the programme is expected to come from sugarcane, maize and biomass, directly benefiting sugar mills and distilleries already producing ethanol under the existing blending programme.

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The Road Ahead

Sugar companies are the most direct beneficiaries of higher ethanol blending targets. Gadkari also backed green hydrogen as a long-term fuel alternative but said that production costs need to fall before it becomes commercially viable at scale.

On conventional fuels, he said petrol and diesel vehicles should be discouraged over time, but acknowledged that consumers cannot be forced to make the switch, making the flex-fuel transition the more practical near-term pathway.

Sources:

NDTV

News24