DECEMBER, 20258TOP STORIESTOP STORIESNITIN GADKARI HIGHLIGHTS ETHANOL-BLENDED PETROL'S BIG ECONOMIC PUSHINDIA & IFAD MARK 48-YEAR PARTNERSHIP STRENGTHENING RURAL DEVELOPMENTNitin Gadkari told Lok Sabha today that India's push for ethanol-blended petrol is helping farmers and cutting the nation's fuel import bill in a big way.He said the shift to E-20 fuel has shown no negative impact on vehicles after extensive testing, easing concerns raised by some members."Use of E-20 petrol (Ethanol Blended Petrol) is a healthy trend. It is a green transition. It is less polluted and also saves foreign exchange," Gadkari said during Question Hour.He explained that the program has already delivered major gains for the farm sector, with about 40,000 crore reaching growers who supply sugarcane, maize, and other feedstock for ethanol production.The minister stressed that the blending effort supports both clean mobility and rural income growth. He said the government views ethanol as a long-term pillar in India's energy shift, reducing dependence on imported crude while giving farmers a steady additional market.Petroleum Minister Hardeep Singh Puri reinforced the message, noting that money once spent on crude oil imports is now flowing into rural pockets. He said farmers have become "Urjadaatas" in addition to being "Annadatas," thanks to the expanding ethanol ecosystem.Puri shared that from Ethanol Supply Year 2014-15 to ESY 2024-25 up to July 2025, blending carried out by public sector Oil Marketing Companies has saved more than 1,40,000 crore in foreign exchange. He said this demonstrates how ethanol-blended petrol is reshaping the industry and strengthening India's energy security.Both ministers underlined that the program combines cleaner fuel, farmer support, and national savings, positioning it as a key part of India's growth strategy. He pointed out that India's experience in building farmer organisations, improving agricultural value chains, and supporting women's economic participation has offered practical models that IFAD has adopted globally. Lario also emphasised India's growing role in South-South cooperation and triangular cooperation, especially in sharing agricultural and institutional practices with developing countries.India and IFAD have worked together for 48 years, financing 36 rural development projects worth about US$4.4 billion, including US$1.5 billion in IFAD funding. Six ongoing projects total roughly US$459 million and focus on market linkages, climate-resilient agriculture, and training programmes that equip rural households with skills to increase income and productivity.Anu Mathai, Additional Secretary in India's Department of Economic Affairs and IFAD Alternate Governor, said the partnership is grounded in a shared commitment to inclusive development and practical rural transformation. She highlighted how community-level work--such as building local institutions, strengthening producer groups, and supporting women's collectives--has contributed directly to measurable improvements in rural earnings and resilience.Several projects have helped small farmers enter organised markets, adopt improved agricultural practices, and reduce exposure to climate risks. Programmes supporting women's groups have enabled them to run enterprises, access credit, and formalise their organisations. The Government of India and the International Fund for Agricultural Development (IFAD) gathered in Rome on 10 December 2025 to highlight a long-running India­IFAD partnership that has helped expand rural livelihoods and improve food security across the country. The event underscored how joint investments over nearly five decades have supported farming communities, strengthened rural institutions, and advanced market access for smallholders.IFAD President Alvaro Lario noted that India's rural development programmes have produced results that continue to guide similar initiatives in other regions.
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