New Delhi — India’s Commerce Ministry on Thursday rejected media reports claiming the country is importing or plans to import large quantities of ethanol from the United States for fuel blending, calling the reports “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 the initiative.
It also said India has made no concessions or commitments related to fuel ethanol imports during trade discussions with the United States.
Any suggestion that the government is considering a policy change to allow large-scale imports of U.S. ethanol is misleading, the ministry said. India’s blending program and procurement policies will continue to be determined by domestic requirements.
The government described ethanol blending as a central part of India’s energy transition and biofuel strategy. The program is intended to reduce crude oil imports, conserve foreign exchange and create additional income opportunities for farmers.
According to the ministry, ethanol blending between fiscal 2015 and May 2026 saved more than Rs 1.90 lakh crore in foreign exchange by replacing 310 lakh metric tons of imported crude oil.
The program also generated more than Rs 1.6 lakh crore in additional earnings for farmers and reduced carbon emissions by more than 930 lakh metric tons, the government said.
India imports about 88.5% of the crude oil it consumes, leaving the country vulnerable to global price fluctuations and supply disruptions.
Domestically produced ethanol made from sugarcane, corn and rice is intended to reduce that dependence while supporting local agriculture and expanding the use of homegrown energy resources. (Source: IANS)
