India Rejects Report Claiming Large-Scale U.S. Ethanol Imports
New Delhi — India’s Commerce Ministry has rejected a media report claiming the country is importing or planning to import large quantities of ethanol from the United States for fuel blending, calling the claims “baseless and factually incorrect.”
The ministry said ethanol used under India’s Ethanol Blended with Petrol program is sourced entirely from domestic producers and that no U.S. ethanol is being imported for fuel blending.
It also said India has made no commitments or offered concessions related to U.S. ethanol imports during trade negotiations between the two countries.
“Any suggestion of a policy change to permit large-scale imports of fuel ethanol from the U.S. is misleading,” the ministry said, adding that ethanol procurement remains governed by India’s domestic policy requirements.
The government described the blending program as an important part of India’s energy transition and biofuel strategy. It said the initiative has reduced crude oil imports, saved foreign exchange and created additional markets for farmers.
Between fiscal 2014-15 and May 2026, the program saved more than Rs 1.90 lakh crore in foreign exchange by replacing about 310 lakh metric tons of imported crude oil, according to the ministry. Farmers earned more than Rs 1.6 lakh crore in additional income, while carbon emissions were reduced by more than 930 lakh metric tons.
India imports about 88.5 percent of the crude oil it consumes, leaving the country exposed to global price volatility and supply disruptions. Domestically produced ethanol made from sugarcane, corn and rice is intended to reduce that dependence while supporting Indian agriculture. (Source: IANS)
