Prime Minister Narendra Modi’s reference to India’s ethanol push, especially by sugarcane farmers of West UP, has given fresh momentum to Uttar Pradesh’s claim of being the country’s largest ethanol producer — a narrative that is seen to carry political weight ahead of the 2027 Assembly elections.

The state has about 50 lakh sugarcane farmers. Come elections, they and their families will likely play a significant role in about 80-100 assembly constituencies in the state, especially across western and central UP.

While inaugurating the Noida International Airport in Jewar on Saturday, Modi had referred to India’s ethanol push helping the country through the global energy crisis. “If production of ethanol had not increased, and its blending with petrol, then the country would have had to import an additional 4.5 crore barrels, which is almost 700 crore litres of crude oil, every year…,” he had said, while crediting farmers, especially sugarcane growers in Western UP, for their crucial role in reducing the country’s dependence on crude oil.

Since 2017, government data shows that UP’s ethanol production has seen a four-fold jump in the past decade, especially after policies encouraged ethanol blending and more distilleries were set up. From 42.70 crore litres in 2016-2017, production in 2025-26 (till Jan) stood at 187.80 crore litres (see box).

Speaking to The Indian Express, Uttar Pradesh Excise Minister Nitin Agarwal said, “Uttar Pradesh is the largest ethanol producer in the country. Our production has increased from 42 crore litres annually in 2016-17 to about 188 crore litres at present.”

Officials said the state now 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. While about 100 distilleries are permitted in the state, sources informed that about 78 are functional. “We are using just 60 per cent of the current capacity. Uttar Pradesh can provide an even larger share if required in the future,” said an official.

Officials said ethanol produced in Uttar Pradesh is supplied both within the state and to other parts of the country primarily through Oil Marketing Companies (OMCs) such as Indian Oil, BPCL, HPCL, along with private players like Reliance and Nayara Energy.

Ahead of next year’s polls, sources said, ethanol production is being projected as a pro-farmer reform. As part of this push, the government in October 2025 had increased the State Advisory Price (SAP) for sugarcane by Rs 30 per quintal for the 2025-26 crushing season, which it touted as the highest since 2017.

Calling it a “historic move”, Sugarcane Development and Sugar Industry Minister Laxmi Narayan Chaudhary had said at the time that the increased price would mean an additional payment of Rs 3,000 crore to sugarcane farmers this crushing season.

Officials also claimed higher earnings from ethanol have helped sugar mills pay farmers on time, one of the major poll promises of the BJP in previous elections. Sugarcane farmers not receiving timely payment for their crop supplied to mills was an issue before every election.

While molasses from sugarcane remains the main raw material, officials said maize and broken rice that is not fit for distribution are also being explored as options to produce ethanol.

Sources said the government has started pushing to increase maize production in the state. Officials maintained that the price of maize has risen from around Rs 12 per kg to Rs 22 per kg in the last three years, linked to higher demand from distilleries.

2016-17: 42.70 crore litres

2017-18: 42.77 crore litres

2018-19: 65.41 crore litres

2019-20: 73.05 crore litres

2020-21: 99.31 crore litres

2021-22: 115.08 crore litres

2022-23: 153.71 crore litres

2023-24: 180.42 crore litres

2024-25: 177.23 crore litres

2025-26 (till Jan): 187.80 crore litres

(Source: Govt data)