Sugar Body Appeals to Govt to Keep Fuel Ethanol Import Curbs to Protect Local Production

The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has requested the Indian government to maintain current fuel ethanol import restrictions, emphasising the protection of domestic ethanol infrastructure and rural employment amid external pressure from global stakeholders, particularly the US.

ISMA Defends Domestic Ethanol Sector 

ISMA Director General Deepak Ballani has written to Commerce Minister Piyush Goyal, voicing opposition to lifting fuel ethanol import restrictions. The US, encouraged by its farm lobbies, is allegedly lobbying India to open its market as part of broader trade discussions. ISMA warned that relaxing import norms could hinder India’s progress in achieving energy self-reliance and weaken national biofuel security.

The Indian ethanol industry has seen significant development since 2018. Domestic ethanol production capacity has risen by over 140% with cumulative investments worth ₹40,000 crore. Ethanol blending currently stands at 18.86%, nearing the 20% target, well ahead of the 2030 deadline.

Import Relaxation May Undermine Farmer and Rural Gains

Allowing fuel ethanol imports could disturb the domestic pricing ecosystem, closely tied to the Fair and Remunerative Price of sugarcane. This disruption may adversely impact payment schedules for over 5.5 crore sugarcane farmers and lead to underutilisation of local ethanol plants still recovering initial investments. ISMA advocates for policy stability to sustain private investment and farmer empowerment.

Read More: Centre Asks States To Connect Job Schemes To ₹99,446-Crore ELI Scheme!

Fuel Ethanol Categorised Under Restricted List

Currently, ethanol imports are listed as ‘restricted’ under trade policy, with prior permission required. The government’s focus has been on building a robust domestic ethanol ecosystem to reduce fossil fuel dependence. With the Ethanol Blending Programme now seen as an economic catalyst in rural India, ISMA’s stance resonates with its core value of inclusive and sustainable energy development.

Conclusion

ISMA's plea aims to secure India’s green fuel roadmap by safeguarding the domestic ethanol sector against ill-timed foreign competition. Stable policies will be essential for sustaining rural livelihoods and consolidating gains from nationwide ethanol initiatives already showing strong progress.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.