COMMODITY
ISMA urges government to maintain restrictions on fuel ethanol imports
Jul-16-2025

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to maintain restrictions on fuel ethanol imports, warning that allowing such imports could undermine national energy security and self-reliance in green fuels. ISMA expressed concern as the United States, backed by its farm lobby groups, has been actively lobbying India to lift these restrictions and allow ethanol imports for fuel use as part of broader trade negotiations, hoping to access India's large ethanol fuel market.

Negotiations are ongoing, with Indian commerce officials engaging US counterparts, but no policy changes allowing fuel ethanol imports have been implemented as of this month. Currently, the government has placed ethanol imports under the 'restricted category'.

India has been aggressively promoting its domestic ethanol industry to reduce reliance on crude oil imports, aiming for a 20 per cent ethanol blending mandate (E20) ahead of the original 2030 target. India's ethanol production capacity has grown by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. 

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