Biofuel, ethanol from algae, beet sugar crops: A win-win opportunity for India

By N.S. Venkataraman*

During an Earth Day event on 22nd April 2025, the Union Road Transport and Highways Minister highlighted that agriculture’s contribution to India’s GDP has declined to 14% over the years. This observation underscores the urgent need for a national dialogue on revitalizing the agricultural sector through eco-friendly and holistic methods to enhance its GDP contribution.

Currently, manufacturing and services sectors contribute 22% and 54% to GDP, respectively. The shrinking share of agriculture is partly due to the reduction in cultivable land, diverted for infrastructure, housing, and other projects. To reverse this trend, farming activities must be economically viable for farmers, nationally relevant, and environmentally sustainable.

India’s agricultural landscape remains dominated by wheat, paddy, sugarcane, cotton, and similar crops. While government initiatives like minimum support prices and subsidies have sustained farmers, they have not significantly boosted agriculture’s GDP contribution.

Ethanol Blending: Challenges and Alternatives

The government’s push for ethanol blending with petrol aims to reduce crude oil imports. Ethanol is produced from food crops like sugarcane, rice, and maize, with oil marketing companies offering remunerative prices. However, this strategy raises concerns in a densely populated country with persistent poverty, where diverting food crops for fuel may conflict with food security. Additionally, using starch from maize for ethanol instead of value-added derivatives (currently imported petrochemical substitutes) represents a missed opportunity for higher farmer income and reduced crude oil dependency.

The Union Minister’s proposal to produce ethanol from bamboo offers a viable alternative, avoiding competition with food crops. Bamboo-based ethanol could economically empower farmers, particularly in Northeast India, while aligning with environmental goals.

Exploring Algae and Beet Crops for Sustainable Solutions

Algae cultivation presents a promising avenue. Algae grow rapidly (doubling biomass in 1–3 days) and require saline water, sunlight, and CO₂, making them ideal for wastelands without encroaching on fertile agricultural land. With 20–25% oil content, algae can yield biofuel, while residual biomass can be fermented into ethanol. This approach integrates agriculture and industry, leveraging India’s abundant wasteland, solar resources, and CO₂ emissions from power plants to create rural employment and reduce fossil fuel reliance.

Similarly, sugar beet cultivation merits attention. Compared to sugarcane, beet requires less water, allows two annual harvests, and fits into crop rotation systems, enhancing soil productivity. Beet processing yields sugar, ethanol, and cattle feed, offering a sustainable alternative to traditional sugarcane-based ethanol.

Policy Imperatives

Despite global advancements in algae biofuels and beet ethanol, India lags in adopting these technologies. Globally, 30% of sugar production relies on beet, supported by R&D and policy incentives. For India, scaling algae and beet ethanol production could reduce crude oil imports, curb emissions, and elevate agriculture’s GDP contribution.

The government must prioritize policy frameworks, R&D funding, and farmer incentives to unlock these opportunities. By aligning agricultural innovation with industrial demand, India can achieve energy security, environmental sustainability, and equitable rural growth—a true win-win for the nation.

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*Trustee, Nandini Voice For The Deprived, Chennai

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