India has refuted media reports suggesting it intends to import large volumes of ethanol from the United States, reaffirming its commitment to sourcing ethanol domestically as its blending programme advances and trade talks continue.
India on Thursday pushed back against media reports suggesting it plans to import large volumes of ethanol from the United States for fuel blending, saying no such commitments have been made in trade talks with Washington. The commerce and industry ministry said the country’s ethanol-blended petrol programme continues to be governed by domestic policy needs and that fuel ethanol is sourced entirely from Indian producers.
The clarification comes as New Delhi and Washington continue broader trade negotiations, including discussions over market access and tariff issues. According to reporting by The Economic Times in May, India had been examining a US request to ease restrictions on ethanol imports, but no policy change had been put in place. The US has sought access to India’s fuel ethanol market as part of those talks.
The issue is politically and economically sensitive because India has built ethanol blending into its energy strategy and the domestic sugar and bio-energy industry has warned against opening the door to imports. The Indian Sugar and Bio-Energy Manufacturers Association said in July that allowing fuel ethanol imports could weaken energy security and undermine the country’s push for self-reliance in green fuels, even as US farm interests have lobbied for access to the Indian market.
At the same time, India has been steadily expanding its ethanol use in petrol. Industry and government updates cited in recent reports indicate blending reached about 18% by the end of 2024, with the country still working towards its 20% target. The government has also moved to support higher-blend fuels by exempting petrol blends such as E22, E25, E27 and E30 from central excise duty, while separately saying it has not decided to raise the nationwide blending level beyond 20%.
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