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Ethanol blending may face headwinds from distillers and automakers

The final cog is the consumer, who incurs higher operating costs on ethanol blending because of the low burning value of ethanol

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Cheap import of corn-based ethanol from the United States will flood India’s market and it will be a disaster, a senior government official said, questioning the need to again rely on another country for fuel import. (Representational Image)

S Dinakar New Delhi
India’s upcoming ethanol policy is buffeted by several headwinds, leading to delays.
 
Distillers, farmers, and vehicle manufacturers are refusing to come to an understanding with the government to enhance ethanol-blending ratios by 7-11 percentage points from the existing 19 per cent now, industry sources and government officials told Business Standard.
 
India is working on a draft to increase ethanol blending beyond 20 per cent to between 27 and 100 per cent.
 
The new elephant in the room is a demand by Washington that India allow importing ethanol for use as fuel under the trade deal being negotiated between the two