New Delhi [India], July 15 : The Indian Sugar & Bio-Energy Manufacturers Association (ISMA) wrote a letter to Piyush Goyal, Minister of Commerce and Industry, voicing concerns regarding the potential removal of restrictions on ethanol imports for fuel blending, amidst ongoing trade discussions with the United States.
In the letter, ISMA emphasised the critical role of the Ethanol Blending Programme (EBP) in promoting clean energy and uplifting Indian farmers.
ISMA highlighted that the government's clear policy direction, anchored in the National Policy on Biofuels (2018) and supported by the DGFT notification of August 21, 2018, which categorised ethanol imports for fuel as 'restricted,' has been instrumental in building a self-reliant domestic ethanol economy.
Interest subvention schemes and a supportive regulatory environment have spurred the establishment and expansion of indigenous ethanol capacities across India.
These interventions have achieved multiple national objectives, including ensuring timely payments and enhanced incomes for sugarcane farmers, reducing India's dependence on imported crude oil, and promoting clean and sustainable biofuels.
As a result, India's ethanol production capacity has surged by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. Ethanol blending has already reached 18.86 per cent, and the country is on track to achieve the 20 per cent blending target within the current Ethanol Supply Year (ESY), ahead of the initial 2025-26 ESY target.
ISMA cautioned that opening up fuel ethanol imports could disrupt farmer payment cycles due to the close tie between ethanol prices and sugarcane FRP. It could also dilute gains in domestic capacity building, investment, and job creation, potentially leading to underutilization of Indian ethanol plants and undermining national energy security and self-reliance in green fuels.
In light of these concerns, ISMA requested the Ministry of Commerce and Industry to maintain the current restriction on ethanol imports for fuel blending, continue supporting a self-reliant indigenous ethanol economy, and reassure stakeholders on policy stability to encourage continued investment and farmer-centric development.
The association expressed confidence that the government would continue to prioritise national interest, safeguard farmers' welfare, and reinforce India's global leadership in sustainable bioenergy.
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