India is celebrating a major milestone: reaching its target of blending 20% ethanol with petrol (E20) five years ahead of schedule. This achievement is hailed as a triumph for cleaner air, reduced reliance on imported oil, and increased income for farmers. However, this seemingly sweet story has a bitter undertone, with questions arising about potential conflicts of interest involving Union Minister Nitin Gadkari and his family’s businesses.
Nitin Gadkari, known for his role in India’s infrastructure development, has been a strong advocate for ethanol blending since 2014. His vision was to harness sugarcane, a key agricultural product, to produce ethanol, thereby benefiting both the environment and the farming community.
As India now proudly dispenses E20 fuel at over 90,000 stations, the government highlights the positive impacts. But a closer look at the rapid rise of CIAN Agro, a company linked to Gadkari’s sons, has raised eyebrows. CIAN Agro, previously involved in producing items like soaps and spice oils, saw a dramatic surge in its financial performance coinciding with the government’s push for higher ethanol blending.
CIAN Agro’s revenues reportedly jumped from ₹17 crore in the first quarter of the financial year 2024 to ₹511 crore in the first quarter of FY26. Its profits experienced an astonishing increase of 52,000% in a single quarter. The company’s stock price soared from ₹40 to ₹3,138 in just 16 months, pushing its market capitalisation to a peak of ₹9,222 crore. This meteoric rise occurred during the same period when Gadkari senior was actively promoting the ethanol blending policy.
Critics, including opposition parties, have voiced concerns about a potential conflict of interest. They argue that the minister’s policy-making decisions may have directly benefited his sons’ businesses. Social media has been abuzz with commentary, with some posts questioning the ethics involved.
Nitin Gadkari has publicly denied any personal involvement, stating that CIAN Agro represents only a small fraction of the total ethanol production in India and that decisions on pricing are made by the Cabinet. He also mentioned that over 450 companies are involved in ethanol production.
Despite these assurances, critics point to CIAN Agro’s strategic acquisitions, such as the purchase of molasses traders and its merger with Manas Agro (run by Gadkari’s other son), as actions that neatly aligned with the nation’s ethanol expansion plans. They suggest that these moves were timed to take advantage of the growing ethanol market.
Meanwhile, the push for E20 fuel has led to discussions among consumers regarding petrol prices and mileage. Some are concerned about the lack of options for unblended fuel and the environmental impact of stubble burning, which is often linked to the sugarcane industry.
While farmers are indeed seeing increased earnings, the astronomical profits reportedly made by the Gadkari family’s businesses have sparked debate. The sharp stock gains of CIAN Agro did not trigger immediate investigations or surveillance by stock market regulators, adding to the public scrutiny.
The narrative surrounding India’s ethanol story thus extends beyond environmental benefits and farmer welfare. It highlights the intricate relationship between political influence and business growth, raising questions about transparency and fairness when family interests appear to closely follow policy directions.
As India continues its journey towards renewable energy sources, the Gadkari family’s involvement in the ethanol sector serves as a prominent example of how business and politics can become intertwined, often leading to both prosperity and controversy. The ‘sugarcane to gold’ transformation, in this case, has also fuelled discussions about the ‘blend’ between policy and profit.