Back Jun 09, 2025

Ethanol blending may face headwinds from distillers and automakers

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.

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