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Global Markets Dictate Crop Prices: Why Farmers Need Government Support, Says Gadkari

September 24, 2025
in National, Politics
Reading Time: 3 min

Union Minister Nitin Gadkari recently emphasized a crucial point: the Indian government must step up to support its farmers. He highlighted that crop prices aren’t solely determined by local conditions but are heavily influenced by complex global market dynamics.

Speaking at the ‘2nd Edition of India Bio-energy & Tech Expo,’ Gadkari explained how international markets dictate the value of essential commodities. For instance, Brazil sets sugar prices, Malaysia influences oil, the U.S. impacts corn, and Argentina plays a significant role in soybean prices.

“The pervasive issues of poverty and unemployment across rural and tribal India stem directly from our farmers’ inability to secure fair prices in the global economic landscape,” stated the Minister. This harsh reality underscores a major challenge for the nation.

Despite 65% of India’s population relying on agriculture, this sector contributes a mere 14% to the country’s Gross Domestic Product (GDP). This disparity, Gadkari argued, necessitates robust governmental support to protect and nurture the rural, agricultural, and tribal economies, which are vital for consumers and the nation as a whole.

Gadkari provided a compelling example: when the government authorized bio-ethanol production from corn, the price of corn surged from ₹1,200 to ₹2,800 per quintal. This significant increase offered a lifeline to farmers who were struggling with inadequate crop prices.

Through corn-based ethanol production, farmers collectively earned an astounding additional ₹45,000 crore. “This demonstrates that diversifying our agricultural sector towards energy and power is not just beneficial, but essential for India’s future,” he remarked. The Minister firmly believes that alternative fuels and biofuels hold immense promise for the country.

“Currently, India is an energy importer. However, the day is coming when we will transform into an energy exporter – a monumental and historic achievement for our nation,” Gadkari declared, envisioning a self-reliant energy future.

Addressing the pressing issue of air pollution, Gadkari noted that transport fuel accounts for 40% of India’s atmospheric contaminants, posing a severe challenge, particularly in urban centers like Delhi. He reiterated the government’s commitment to national interest by actively working to mitigate pollution levels.

With India importing fossil fuels worth an staggering ₹22 lakh crore annually, contributing both to economic drain and environmental degradation, Gadkari stressed the urgency. “From both an economic and environmental perspective, it is imperative for India and the world to aggressively promote biofuel and alternative fuels,” he urged.

Concluding his address, the Minister expressed his ambitious goal: to position India as a global leader in sustainable aviation fuel, marking a bold step towards a greener, more prosperous future.

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