Latest news with #NationalPolicyonBiofuels
Time of India
15-07-2025
- Business
- Time of India
ISMA urges centre to continue with curbs on ethanol imports
New Delhi, The Indian Sugar Mills Association (ISMA) has urged the government to continue with the restrictions on ethanol imports as the measure has spurred India's petrol blending programme in the drive to green energy and also enabled timely payments to sugarcane farmers. ISMA has, in a letter to Commerce and Industry Minister Piyush Goyal , referred to media reports suggesting the possible consideration of lifting restrictions on ethanol imports for fuel blending, as part of ongoing trade discussions with the US. The latter states that over the last few years, the Government's clear and forward-looking policy direction-anchored in the National Policy on Biofuels which led to placing ethanol imports for fuel under the 'restricted' category, has laid a solid foundation for a self-reliant, domestic ethanol economy. The interest subvention schemes and facilitative regulatory ecosystem have catalysed the establishment and expansion of indigenous ethanol capacities across India, the letter points out. These landmark interventions have achieved multiple national objectives of ensuring timely payments and enhanced incomes for sugarcane farmers, reducing India's dependence on imported crude oil and promoting clean and sustainable biofuels , the letter states. It highlights that the coordinated effort has led to India's ethanol production capacity growing by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. Ethanol blending has already reached 18.86 per cent and is firmly on track to meet the 20 per cent blending objective ahead of target. This remarkable progress has been made possible due to the Prime Minister's visionary leadership and unwavering commitment to the welfare of India's farmers. This has had a direct and measurable impact on farmers' welfare. By allowing the diversion of sugarcane and surplus grains into ethanol production at administered prices, the government has enabled timely cane payments and improved farm-level incomes across the country, the letter added. The latter states that opening up ethanol imports for blending would pose challenges to the sugar industry as it would affect profitability and may lead to underutilisation of Indian ethanol plants, many of which are still in the early stages of capital recovery.
Time of India
15-07-2025
- Business
- Time of India
ISMA urges Govt to continue with curbs on ethanol imports
New Delhi: The Indian Sugar Mills Association (ISMA) has urged the government to continue with the restrictions on ethanol imports as the measure has spurred India's petrol blending programme in the drive to green energy and also enabled timely payments to sugarcane farmers. ISMA has, in a letter to Commerce and Industry Minister Piyush Goyal, referred to media reports suggesting the possible consideration of lifting restrictions on ethanol imports for fuel blending, as part of ongoing trade discussions with the US. The latter states that over the last few years, the Government's clear and forward-looking policy direction-anchored in the National Policy on Biofuels which led to placing ethanol imports for fuel under the 'restricted' category, has laid a solid foundation for a self-reliant, domestic ethanol economy. The interest subvention schemes and facilitative regulatory ecosystem have catalysed the establishment and expansion of indigenous ethanol capacities across India, the letter points out. These landmark interventions have achieved multiple national objectives of ensuring timely payments and enhanced incomes for sugarcane farmers, reducing India's dependence on imported crude oil and promoting clean and sustainable biofuels, the letter states. It highlights that the coordinated effort has led to India's ethanol production capacity growing by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. Ethanol blending has already reached 18.86 per cent and is firmly on track to meet the 20 per cent blending objective ahead of target. This remarkable progress has been made possible due to the Prime Minister's visionary leadership and unwavering commitment to the welfare of India's farmers. This has had a direct and measurable impact on farmers' welfare. By allowing the diversion of sugarcane and surplus grains into ethanol production at administered prices, the government has enabled timely cane payments and improved farm-level incomes across the country, the letter added. The latter states that opening up ethanol imports for blending would pose challenges to the sugar industry as it would affect profitability and may lead to underutilisation of Indian ethanol plants, many of which are still in the early stages of capital recovery.
Hans India
15-07-2025
- Business
- Hans India
ISMA urges Govt to continue with curbs on ethanol imports
New Delhi: The Indian Sugar Mills Association (ISMA) has urged the government to continue with the restrictions on ethanol imports as the measure has spurred India's petrol blending programme in the drive to green energy and also enabled timely payments to sugarcane farmers. ISMA has, in a letter to Commerce and Industry Minister Piyush Goyal, referred to media reports suggesting the possible consideration of lifting restrictions on ethanol imports for fuel blending, as part of ongoing trade discussions with the US. The latter states that over the last few years, the Government's clear and forward-looking policy direction-anchored in the National Policy on Biofuels which led to placing ethanol imports for fuel under the 'restricted' category, has laid a solid foundation for a self-reliant, domestic ethanol economy. The interest subvention schemes and facilitative regulatory ecosystem have catalysed the establishment and expansion of indigenous ethanol capacities across India, the letter points out. These landmark interventions have achieved multiple national objectives of ensuring timely payments and enhanced incomes for sugarcane farmers, reducing India's dependence on imported crude oil and promoting clean and sustainable biofuels, the letter states. It highlights that the coordinated effort has led to India's ethanol production capacity growing by over 140 per cent since 2018, with investments exceeding Rs 40,000 crore. Ethanol blending has already reached 18.86 per cent and is firmly on track to meet the 20 per cent blending objective ahead of target. This remarkable progress has been made possible due to the Prime Minister's visionary leadership and unwavering commitment to the welfare of India's farmers. This has had a direct and measurable impact on farmers' welfare. By allowing the diversion of sugarcane and surplus grains into ethanol production at administered prices, the government has enabled timely cane payments and improved farm-level incomes across the country, the letter added. The latter states that opening up ethanol imports for blending would pose challenges to the sugar industry as it would affect profitability and may lead to underutilisation of Indian ethanol plants, many of which are still in the early stages of capital recovery.
Mint
02-06-2025
- Business
- Mint
Sugar industry seeks ethanol price revision as blending share drops to 28 pc
New Delhi, The sugar industry has demanded a revision of ethanol procurement prices and extension of blending targets beyond 20 per cent, as the sector's contribution to the national ethanol programme has declined sharply from 73 per cent to just 28 per cent. The industry has also demanded accelerated promotion and manufacturing of Flex-Fuel Vehicles to boost ethanol demand and ensure market preparedness for higher blending, National Federation of Cooperative Sugar Factories said in a statement. The demand was made by the industry delegation, led by Ravi Gupta, Chairman of IFGE's Sugar Bioenergy Group, and expert Member on the Board of NFCSF, in a meeting held at the PMO recently, it said. In 2022-23 season , NFCSF said the sugar industry reached a significant milestone by diverting 43 lakh tonnes of sugar towards ethanol production, enabling the supply of 369 crore litres of ethanol, which accounted for 73 per cent of total ethanol blended with fuel across the country. However, in 2023-24, ethanol supply from sugar-based feedstocks declined to 270 crore litres, contributing only 38 per cent to the national blending programme. "This is projected to fall further to 250 crore litres in 2024-25, making up just 28 per cent of the total blending target of 900 crore litres," it said in a statement. The main reason for this drop is that ethanol procurement prices have not been increased in line with the rise in the Fair and Remunerative Price of sugarcane, making ethanol production less profitable for sugar mills. Although there is potential to divert up to 40 lakh tonnes of sugar into ethanol this year, only 32 lakh tonnes are expected to be diverted. "This shortfall is due to the gap between ethanol prices and better returns from selling sugar directly in the domestic market," NFCSF said. As a result, India's ethanol production capacity of 952 crore litres per year including 130 crore litres from multi-feed distilleries is being under-utilised. The Ethanol Blending Programme has emerged as a vital solution to the longstanding issue of surplus sugar stocks under the National Policy on Biofuels – 2018, which set an ambitious target to divert 60 to 70 lakh tonnes of excess sugar annually towards ethanol production. Since the policy's inception, India's ethanol production capacity has expanded significantly from 518 crore litres in 2018 to 1,800 crore litres in 2025. Correspondingly, the ethanol blending rate with petrol has risen sharply from 4.22 per cent to 18.61 per cent as of April 30, 2025. Sugar production has reached 286.9 lakh tonnes as on April 30 of the ongoing 2024-25 season, out of which 30 lakh tonnes have been diverted for ethanol. The industry has additionally suggested evaluating the possibility of blending ethanol in diesel as a future strategy to expand ethanol use across fuel types. NFCSF noted that diverting sugar to ethanol does not reduce the actual production of sugar but helps to manage surplus sugar stocks, stabilise market prices, improve the financial health of sugar mills, and ensure timely payments to farmers. This article was generated from an automated news agency feed without modifications to text.
Times of Oman
08-04-2025
- Business
- Times of Oman
Amid Trump Tariffs, USTR highlights need to secure market access for US fuel ethanol in India, Thailand
Washington DC: With tariffs imposed by US President Donald Trump beginning to kick in, the United States Trade Representative (USTR) has spotlighted 10 trade practices faced by American exporters they deemed "unfair", including India's ban on US ethanol imports. The USTR listed 10 "unfair trade practices" by trading partners faced by American exporters. In a post on X, the USTR said, "India bans imports of US ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol, requiring approval and issuance permits, and hasn't approved an import permit for fuel ethanol since 2005. Securing market access to India and Thailand for exports of US fuel ethanol would result in at least an additional USD 414 million in annual export value." According to the USTR's 2025 National Trade Estimate Report, "Despite ambitious targets for blending ethanol with gasoline, India prohibits the import of ethanol for fuel use. The Ministry of Commerce and Industry (MOCI) also requires an import license from the Directorate General of Foreign Trade (DGFT) to import ethanol for non-fuel purposes. In addition, the DGFT restricts biofuel imports under HS subheadings 2207.20 and HS 2710.20 and HS heading 3826 for non-fuel use to actual users. Since May 2019, the Commerce Ministry has required an import license for biofuels under these HS headings and subheadings." On March 20, Minister of State for Petroleum Suresh Gopi said in a written reply to the Lok Sabha that the Union government is planning to increase the blending of 20 per cent ethanol in petrol from 2030. The National Policy on Biofuels - 2018, as amended in 2022, inter alia advanced the target of 20 per cent ethanol blending in petrol to Ethanol Supply Year (ESY) 2025-26 from 2030. Public Sector Oil Marketing Companies (OMCs) achieved the target of 10 per cent ethanol blending in petrol in June 2022, i.e. five months ahead of the target during ESY 2021-22. The blending of ethanol further increased to 12.06 per cent in ESY 2022-23, 14.60 per cent in ESY 2023-24 and 17.98 per cent in ESY 2024-25 upto 28th February 2025. So far, the government has not decided to increase ethanol blending beyond 20 per cent, according to a release by the Ministry of Petroleum & Natural Gas that quotes the MoS. According to the Roadmap for Ethanol Blending in India 2020-25, prepared by an inter-ministerial committee, using 20 per cent ethanol-blended petrol (E20) results in a marginal reduction in fuel efficiency for four-wheelers designed for E10 and calibrated for E20. The Society of Indian Automobile Manufacturers (SIAM) informed the committee that engine hardware and tuning modifications can reduce the efficiency loss due to blended fuel. As per the MoS reply, the committee report has also highlighted that no major issues were observed in vehicle performance, wear of engine components, or engine oil deterioration with E20 fuel. In its posts, the USTR also flagged issues with China, Japan, the EU and other nations. The USTR said, "Over 100,000 Chinese-made American flags are sold every month on just one e-commerce platform alone, resulting in USD 2 million in lost sales for American manufacturers, which ultimately leads to lost job opportunities and business closures. American flags should be Made in America." "Japan maintains tariffs of up to 10.5 per cent on U.S. seafood exports and also subjects several types of fish to a complex import quota system, which makes it difficult for US exporters to enter the market reliably. These unfair trade practices cost the US seafood industry an estimated $189 million annually in lost export potential, hurting American fishers and coastal communities that depend on global market access to sustain their livelihoods," the USTR said. USTR also highlights the European Union's Carbon Border Adjustment Mechanism: "The EU's Carbon Border Adjustment Mechanism (CBAM) imposes costly verification measures and could reduce U.S. exporters' advantage in the EU market over high-emissions competitors, namely China. These EU regulations undermine fair competition, penalizing US companies while providing advantages to EU-based competitors. It is estimated the EU CBAM will impact USD 4.7 billion worth of annual US exports." The USTR's 2025 National Trade Estimate Report says that trade barriers or other trade-distorting practices affect US exports to foreign markets. They effectively impose costs on US exports that are not imposed on goods produced in the importing market. These unfair trade practices undermine US exporters' competitiveness and, in some cases, prevent US goods from entering the foreign market entirely. Meanwhile, on Monday, US Secretary of State Marco Rubio and External Affairs Minister S Jaishankar held a discussion on US tariffs on India following President Donald Trump's announcement last week about imposing a 10 per cent tariff on all imports to the US, which had caused concerns in the global market. US has imposed 26 per cent tariffs on Indian imports. The discussion was aimed at progressing towards a fair and balanced trade relationship, as stated by the US State Department spokesperson Tammy Bruce. On Monday, Jaishankar took to social media following the call with Rubio and said that he had spoken with the US Secretary of State about the early conclusion of a bilateral trade agreement.
