ISMA Seeks Ban on Ethanol Imports

16-Jul-2025 08:15 PM

New Delhi. The apex body of private sugar mills, Indian Sugar and Bio Energy Manufacturers Association (ISMA), has urged the government to ban the import of ethanol for fuel use.

It warned that importing ethanol from abroad would cause significant losses to domestic producers, halt new investments in the sector, and make it difficult for sugarcane farmers to receive timely payments.

There are reports that ethanol imports may be discussed in the India-US bilateral trade agreement, prompting ISMA's concern. According to informed sources, the US is pressuring India to allow access for American ethanol in Indian fuel markets. Most ethanol exported by the US is grain-based.

In a letter to the Union Commerce Minister, ISMA stated that permitting ethanol imports from the US would severely impact India’s domestic industry.

The progress India has made in ethanol production could be undone. Since 2018, the country has seen major developments in this sector, with investments totaling around Rs 40,000 crore and a capacity increase of over 140 percent.

The letter emphasized that if fuel-grade ethanol imports are allowed, domestic production will be rendered idle, investments will stall, and employment opportunities will decline.

Currently, ethanol blending in petrol has reached 19 percent and is on track to achieve the government’s target of 20 percent in the 2024-25 marketing year—one year ahead of schedule. The current marketing season runs from November 2024 to October 2025.

ISMA strongly urged the government to refrain from allowing ethanol imports to protect domestic producers and ensure the sustainability of the industry.