ISMA urges government to continue with restrictions on ethanol imports
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) has urged the government to retain restrictions on ethanol imports, warning that lifting them could hurt the domestic sugar industry. In a letter to Commerce Minister Piyush Goyal, ISMA emphasized that the current policy has boosted ethanol blending, ensured timely cane payments, and attracted over ₹40,000 crore in investments.
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) has appealed to the government to maintain the current restrictions on ethanol imports, emphasizing that the policy has significantly advanced India’s ethanol blending programme and ensured timely payments to sugarcane farmers. In a letter addressed to Commerce and Industry Minister Piyush Goyal, ISMA cited media reports indicating that the government may be considering lifting these restrictions as a part of ongoing trade discussions with the United States, reported IANS.
According to the letter, the government’s decisive and forward-looking policy under the National Policy on Biofuels, which classified ethanol imports for fuel use as “restricted”, has laid a strong foundation for building a self-sufficient domestic ethanol industry. ISMA noted that interest subvention schemes and a supportive regulatory framework have played a crucial role in boosting ethanol production capacity across the country.
The letter also emphasized that these policy measures have achieved key national goals, such as ensuring prompt payments and better incomes for sugarcane farmers, reducing India’s reliance on crude oil imports, and fostering clean and sustainable biofuel use. It pointed out that since 2018, ethanol production capacity in India has grown significantly, supported by investments exceeding Rs. 40,000 crore. With ethanol blending already at 18.86%, the country is on track to achieve its 20% blending target ahead of schedule.
ISMA attributed this success to the Prime Minister’s leadership and commitment to farmer welfare. The government’s policy allowing the use of sugarcane and surplus grains for ethanol production at administered prices has directly improved cane payments and farm-level incomes nationwide. The association cautioned that removing import restrictions could hurt the domestic sugar industry by reducing profitability and potentially leading to underutilization of ethanol production facilities, many of which are still in the early phases of capital cost recovery.
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Source : Chinimandi
