New Delhi, August 6, 2026 (Yes Punjab News)
The Ministry of Commerce on Thursday dismissed media reports claiming that India is importing or planning to import large quantities of ethanol from the United States for fuel blending, terming the claims “baseless and factually incorrect”.
The ministry clarified that ethanol used under the Ethanol Blended with Petrol (EBP) Programme is sourced entirely from domestic producers and there is currently no import of ethanol from the US for fuel blending purposes.
It further stated that no concessions or commitments related to ethanol imports for fuel blending have been made during India-US trade discussions.
“Any suggestion of a policy change to permit large-scale imports of fuel ethanol from the US is misleading. India’s fuel blending programme and ethanol procurement continue to be governed solely by domestic policy requirements,” the ministry said.
The government highlighted that the EBP Programme has become a key component of India’s energy transition and biofuel strategy by reducing dependence on imported crude oil, saving foreign exchange and creating additional income opportunities for farmers.
According to official data, between 2014-15 and May 2026, the ethanol blending programme has helped India save more than ₹1.90 lakh crore in foreign exchange by replacing around 310 lakh metric tonnes of imported crude oil. The initiative has also generated additional earnings of over ₹1.6 lakh crore for farmers and contributed to reducing carbon emissions by more than 930 lakh metric tonnes.
The ministry said India imports nearly 88.5 per cent of its crude oil requirements, making energy security a major policy priority. It added that ethanol produced from domestic resources such as sugarcane, maize and rice provides an opportunity to reduce exposure to international crude oil price fluctuations and supply disruptions.
The government reiterated that India’s ethanol blending strategy remains focused on strengthening domestic production, supporting farmers and promoting cleaner energy alternatives.
FOLLOW NOW
