India’s ethanol industry under threat from US trade pressure
India is reviewing a U.S. request to ease ethanol import restrictions, sparking concern among domestic stakeholders. The U.S. seeks access for fuel ethanol, but Indian policies aim to protect local producers. Experts warn that lifting restrictions could harm domestic industry, threaten investments, and undermine India’s self-reliant bioeconomy vision and farmer-linked ethanol ecosystem.
India is currently reviewing a request from the United States to ease restrictions on ethanol imports as part of ongoing trade negotiations. This request has raised significant concerns among domestic industry stakeholders and policy experts in India.
Sources familiar with the trade talks indicate that the United States has been advocating for India to remove import barriers on fuel ethanol, which is primarily used for blending with gasoline. India’s current policy framework includes restrictions on fuel ethanol imports and imposes duties on non-fuel ethanol imports, a strategy designed to protect and support its domestic ethanol industry.
“The approval for unrestricted import of American ethanol into India poses a serious threat to the nation’s circular economy, undermining the viability of domestic ethanol producers, farmers and biofuel-linked industries,” stated Daulat Desai, a retired IAS officer and a grain ethanol manufacturer. “It risks eroding investor confidence, endangering the financial exposure of banks that have financed existing and upcoming projects and dismantling India’s vision of a self-reliant and sustainable bioeconomy.”
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Source : The Hindu Business line
