Commerce Ministry refutes rumors of importing US ethanol for fuel blending, reaffirming complete reliance on domestic producers.
Published: August 6, 2026, 8:46 PM IST
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New Delhi: Amid swirling rumors of concessions in trade talks with Washington, the government if India has drawn a firm line in the sand, reaffirming energy self-reliance over foreign importsThe Commerce Ministry has forcefully debunked media claims alleging that India is importing or plans to import large quantities of fuel ethanol from the United States. Terming the reports “baseless and factually incorrect,” officials clarified that ethanol used under the Ethanol Blended with Petrol (EBP) Programme is strictly sourced from domestic producers. Furthermore, no trade commitments or concessions have been made with the US, confirming India’s biofuel mandate remains entirely self-reliant and dictated by domestic policy framework.
India’s domestic policy framework
As per the domestic policy framework, ethanol used for fuel blending under the Ethanol Blended with Petrol (EBP) Programme is sourced entirely from domestic producersThere is no import of ethanol for fuel blending from the US, a ministry statement said.
Further, no concessions or commitments relating to the import of ethanol for fuel blending from the US have been made in the India-US trade discussions, it addedAccordingly, any suggestion of a policy change to permit large-scale imports of fuel ethanol from the US is misleading.
Update on India’s fuel blending programme
India’s fuel blending programme and ethanol procurement continue to be governed solely by India’s domestic policy requirements, the ministry statedAccording to the government, the EBP Programme has emerged as a key pillar of India’s energy transition and biofuel strategy, which has saved the country foreign exchange by reducing crude oil imports and strengthened farmers’ incomes through new market opportunities.
From 2014-15 up to May 2026, the ethanol blending programme has resulted in a saving of over Rs 1.90 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of imported crude oil and has generated additional earnings for farmers of more than Rs 1.6 lakh crore.
Besides, it has cut carbon emissions of over 930 lakh metric tonnes, as per the statementThe government has highlighted that India imports close to 88.5 per cent of the crude oil it consumes, which explains a great deal about why ethanol blending sits so high on the policy agenda.
(With inputs from agencies)
