India’s sugar industry can leverage sugarcane and other domestic feedstocks to produce a wider range of biochemicals and reduce dependence on imported chemical products, according to Dr Sangeeta Srivastava, Executive Director, Godavari Bio Refineries. Speaking at the Indian Sugar & Bio-energy Manufacturers Association (ISMA) Conference 2026, Srivastava said India should move beyond using sugarcane primarily for sugar and ethanol. Instead, the country should unlock the value of the carbon contained in sugarcane to produce fuels, chemicals, and other high-value products.
Sugarcane Can Power Integrated Biorefineries
According to Srivastava, India has the potential to develop integrated biorefineries that convert multiple feedstocks into a broad portfolio of products. In addition to sugarcane, the industry could use grain and other domestic agricultural resources to expand production possibilities. Potential products include polylactic acid (PLA), polyhydroxyalkanoates (PHA), lactic acid, xylitol, biofuels, and biobutanol. By diversifying beyond sugar and ethanol, sugar mills could move further up the value chain and generate greater economic value from the same agricultural resources.
India Has a History of Bio-Based Chemical Production
Srivastava noted that India has previously produced several bio-based chemicals, including biobutanol. Godavari Bio Refineries was the first bio-based butanol producer in India, with production at its facility in Barabanki, Uttar Pradesh, before the operation was discontinued around 1998. India has also produced bio-based chemicals such as acetic acid, butanol, and acetaldehyde, demonstrating the country’s existing capabilities in bio-based manufacturing.
Responsible Feedstock Sourcing Will Be Critical
India’s combination of abundant sunlight, agricultural resources, and a large small-farmer base provides a strong foundation for a bio-based chemicals industry. However, Srivastava stressed that the industry must ensure farmers benefit from the value created from agricultural feedstocks. As bio-based chemicals gain market acceptance, traceability and responsible sourcing will become increasingly important. Customers are likely to demand greater visibility into the source of carbon, the sustainability of feedstocks, and the methods used to produce them. Therefore, companies will need to adopt good agricultural practices while ensuring responsible treatment of farmers and agricultural workers.
Soil Health and Sustainable Agriculture Matter
The long-term growth of the bio-based chemicals industry will depend on reliable agricultural feedstocks. Consequently, protecting soil health and promoting regenerative agriculture will become increasingly important. Srivastava said responsible sourcing practices can help secure feedstock while creating a more sustainable relationship between chemical manufacturers and agricultural communities. She advocated closer collaboration between companies and farmers to develop reliable feedstock supply chains while maintaining sustainable agricultural practices.
Sugar Mills Can Evolve into Integrated Biorefineries
Srivastava said sugar mills could gradually transform into integrated biorefineries by adopting multiple technologies and processing different feedstocks. These facilities could produce first-generation (1G) and second-generation (2G) ethanol, compressed biogas (CBG), green methanol from carbon dioxide, and other value-added products. Furthermore, she argued that the industry should increasingly view ethanol as a chemical feedstock, rather than relying on it primarily as a transportation fuel. Ethanol can be produced through different technological routes, including 1G, 2G, 3G, and 4G technologies. In addition, gas fermentation and carbon dioxide conversion could create further pathways to valuable chemicals.
India Can Reduce Imports of Ethanol-Based Chemicals
According to Srivastava, India imports approximately ₹5,000 crore worth of ethanol-based chemicals, creating a significant opportunity for domestic manufacturers. She identified products such as ethanolamines, ethylene oxide, and specialty chemicals derived from acetaldehyde as potential areas for domestic production. Developing these products locally could therefore help reduce import dependence while strengthening India’s domestic chemical manufacturing capabilities.
From Energy Security to Chemical Security
Srivastava called for India to broaden its focus from energy security to chemical security by producing more carbon-based products domestically. As reported by chinimandi.com, rather than evaluating sugarcane only by the tonnes of cane produced, she suggested assessing the carbon contained in each tonne of sugarcane and exploring ways to convert that carbon into higher-value fuels, chemicals, and materials. Moving up the value chain could generate significantly greater economic value than using the same feedstock solely for fuel.
