E20: Will India now import ethanol from the US? Government issues statement on trade deal

Trade Deal Update: Amidst the ongoing trade deal discussions between India and the US, the topic of ethanol has gained significant attention. Consequently, many are wondering if India will now import ethanol from the US.

Trade Deal Update: Whenever a motorist visits a petrol pump to refuel, the price is the first thing they check. Recently, there has been considerable discussion regarding ethanol-blended petrol. The government is promoting ethanol-blended petrol to reduce India's dependence on imported crude oil, save foreign exchange, and benefit farmers. Amidst the India-US trade deal talks, the issue of ethanol has also come to the forefront, raising the question: will India now purchase ethanol from the US?

Will India import ethanol from the US?

The central government has clarified that there will be no changes to the existing regulations regarding ethanol imports from the US. The government maintains that priority will be given to ethanol produced domestically in India for blending with petrol.

What did the Ministry of Commerce say?

On Thursday, the Ministry of Commerce stated that no commitments regarding ethanol imports from the US have been made as part of the ongoing India-US trade deal negotiations. Furthermore, the Ministry noted that various claims circulating on this issue are incorrect and should not be believed. In essence, the existing rules governing ethanol imports from the US remain unchanged.

Why won't ethanol be imported from the US?

Currently, the ethanol used for E20 fuel is produced within India.
Additionally, the government has clarified that no new concessions or promises have been made regarding ethanol imports from the US.
Moreover, purchasing domestically produced ethanol benefits farmers who cultivate sugarcane and other crops, helping to increase their income. The government is promoting ethanol-blended petrol to reduce crude oil imports.
The government has clarified that there will be no changes to the existing regulations regarding ethanol imports from the US.