The Indian Sugar and Bio Energy Manufacturers Association (ISMA) has called on the government to retain existing restrictions on ethanol imports, citing their critical role in advancing India’s ethanol blending programme and supporting timely payments to sugarcane farmers, according to the news report by IANS.
In a letter addressed to Commerce and Industry Minister Piyush Goyal, ISMA referred to recent media reports suggesting that the government may be considering the removal of ethanol import restrictions as part of ongoing trade negotiations with the United States.
The association highlighted that policy measures under the National Policy on Biofuels — which classified ethanol imports for fuel blending as “restricted” — have been instrumental in building a robust domestic ethanol economy. According to ISMA, this framework, supported by interest subvention schemes and a favourable regulatory environment, has driven large-scale investments and expansion in indigenous ethanol production capacities.
“These measures have delivered multiple national benefits,” the letter stated, noting that ethanol production capacity in India has surged by over 140% since 2018, backed by investments exceeding ₹40,000 crore. Ethanol blending levels have already reached 18.86%, with the country on track to achieve the 20% target ahead of schedule.
ISMA attributed the progress to the central government’s consistent support and the Prime Minister’s focus on farmer welfare. The association emphasized that allowing sugarcane and surplus grains to be diverted toward ethanol production at administered pricing has improved farm incomes and enabled timely payments to cane growers.
However, the association warned that lifting restrictions on ethanol imports could adversely impact the domestic sugar and bioenergy sectors. “Such a move may undermine the viability of Indian ethanol plants, many of which are still recovering capital investments, and could lead to under utilization of existing capacities,” the letter said.
ISMA urged the government to maintain its current ethanol import policy to preserve the gains made under the biofuel strategy and safeguard the interests of farmers and domestic producers.
