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Ethanol unit coming to Khagaria, Bihar: Pralhad Joshi

June 26, 2025

Union Minister Pralhad Joshi announces ethanol unit in Khagaria, Bihar. New grain silo to improve agri-logistics, boost farmers’ income and fuel sustainability.

KHAGARIA, 26 June 2025: Union Minister of Consumer Affairs, Food and Public Distribution, Pralhad Joshi, has announced that a new ethanol production unit will be established in Khagaria, Bihar—one of the top maize-producing districts in the country. The move is aimed at boosting the local agro-economy and aligning with India’s broader push for sustainable fuel alternatives.

The announcement was made during the inauguration of a state-of-the-art grain silo warehouse in Khagaria, which has a storage capacity of 50,000 tonnes. The facility is expected to play a key role in reducing post-harvest losses, enabling scientific grain storage, and enhancing agri-logistics infrastructure in the region.

“This is a significant step towards fulfilling Prime Minister Narendra Modi’s vision of modernizing India’s agricultural infrastructure and doubling farmers’ income,” said Minister Joshi. “Bihar, with its immense potential, stands at the forefront of this transformation.”

The ethanol plant, once operational, will help in creating rural employment, increasing maize procurement, and strengthening the state’s role in India’s Ethanol Blending Programme (EBP). It will also contribute to decarbonizing the transport sector, reducing fossil fuel dependency, and empowering local farmers by creating a stable market for their crops.

Bihar is strategically positioned to become a biofuel hub due to its abundant maize cultivation and government support. Several private and public sector players have recently expressed interest in setting up ethanol units across the state, following policy relaxations and incentives.

The newly launched grain silo will complement these efforts by offering a reliable, temperature-controlled storage environment, thus minimizing grain spoilage and ensuring better price realization for farmers.

This dual development—scientific storage and ethanol manufacturing—marks a milestone in Bihar’s journey toward agricultural modernization and rural economic transformation.

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