Overview
- The Commerce Ministry issued a statement on Thursday rejecting media claims that India is importing or planning to import large volumes of U.S. ethanol for the Ethanol Blended with Petrol programme.
- The ministry said ethanol used for blending is sourced entirely from domestic producers under existing policy and that no concessions on ethanol imports were made during India–US trade discussions.
- From 2014–15 through May 2026 the government says the EBP programme saved more than Rs 1.90 lakh crore in foreign exchange, substituted about 310 lakh metric tonnes of imported crude, raised over Rs 1.6 lakh crore in farmers’ earnings, and cut more than 930 lakh metric tonnes of carbon emissions.
- Observers warn that allowing large-scale imports of cheaper U.S. ethanol would risk undercutting Indian sugar mills and grain-based distilleries that built capacity to serve the blending programme.
- The official refutation closes recent speculation that ethanol was a bargaining concession in trade talks and leaves New Delhi to manage future pressure on market access while protecting energy security and rural incomes.