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 countries.
