3 weeks ago
India refutes reports of US ethanol imports for fuel blending
Some news reports said India was buying a lot of ethanol from the United States to mix with petrol.
India's government said those reports are not true.
Ethanol is a type of fuel made from plants like sugarcane, maize and rice.
India mixes ethanol with petrol to make fuel.
This fuel blending programme gets all of its ethanol from Indian farmers, not from the US.
The government said it never made any promise to buy ethanol from the US during trade talks.
India makes ethanol at home to reduce the oil it buys from other countries.
This has saved India a lot of money and helped farmers earn more.
It has also helped cut down on pollution.
The government wants to keep using fuel made from crops grown in India.
India's Commerce Ministry called media reports of large-scale US ethanol imports for fuel blending 'baseless and factually incorrect'.
The ministry said all ethanol used under the Ethanol Blended with Petrol (EBP) Programme is sourced entirely from domestic producers.
It added that no concessions or commitments related to US ethanol imports were made during India-US trade discussions.
From 2014-15 to May 2026, the EBP Programme saved over Rs 1.90 lakh crore in foreign exchange and cut carbon emissions by over 930 lakh metric tonnes.
India imports close to 88.5 per cent of the crude oil it consumes, which the government cited as a key reason for prioritising ethanol blending.
- Who
- India's Commerce Ministry and media outlets that reported the ethanol import claims
- What
- The Commerce Ministry refuted reports that India is importing or plans to import large quantities of US ethanol for fuel blending
- Where
- India, in the context of India-US trade discussions
- When
- Thursday, following reports ahead of the statement; savings data covers 2014-15 up to May 2026
- Why
- To correct what the government calls misleading claims and to affirm that fuel blending is governed solely by India's domestic policy requirements
Media reports
Government stance
US ethanol imports for fuel blending
Media reports
Media reports suggested that India is importing and intends to import large quantities of ethanol from the United States for fuel blending.
Government stance
The Commerce Ministry says the reports are baseless; all fuel-blending ethanol is sourced from domestic producers and no US import commitments were made in trade discussions.
Key facts
- Ministry
- Commerce Ministry (Government of India)
- Programme
- Ethanol Blended with Petrol (EBP) Programme
- Foreign exchange saved
- Over Rs 1.90 lakh crore (2014-15 to May 2026)
- Crude oil substituted
- 310 lakh metric tonnes of imported crude oil
- Additional farmer earnings
- More than Rs 1.6 lakh crore
- Carbon emissions cut
- Over 930 lakh metric tonnes
- Crude oil import dependence
- Close to 88.5 per cent of consumption
- Ethanol feedstocks
- Indian sugarcane, maize and rice
Sources
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