U.S. Criticizes India’s Ban on American Ethanol Imports

09-Apr-2025 02:57 PM

New Delhi: The U.S. Trade Representative (USTR) has expressed strong concern over India’s ban on American ethanol imports for fuel use, calling it an unfair trade practice in its National Trade Estimate Report.

The report highlights 10 major trade barriers imposed by nations including India, China, Japan, and the EU, stating that such policies distort trade and hurt American producers and exporters.

The USTR noted that both India and Thailand have refused import permits for fuel ethanol in 2025, limiting American access to growing markets. It estimates potential annual earnings of $414 million if ethanol imports were allowed.

India is promoting ethanol blending in petrol using domestic sources like sugarcane, rice, and maize.

In February 2025, ethanol blending in India’s petrol reached 19.7%, with the government banning fuel ethanol imports to boost local production.

Import of ethanol for non-fuel use still requires a government license.