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India has not offered any concessions or commitments to the US on ethanol imports for fuel blending in the ongoing bilateral trade negotiations, the Commerce Department said on Thursday. Further, no ethanol is being imported from the US for use in blending with fuel, it added.
“India’s fuel blending programme and ethanol procurement continues to be governed solely by India’s domestic policy standards,” the statement asserted.
The clarification comes amid controversy over the government’s push to make E20 — petrol blended with 20 per cent ethanol — the default fuel at retail outlets. Opponents have raised concerns about reduced fuel efficiency, possible compatibility issues to older vehicles, and the lack of consumer choice, while the government argues that the transition is necessary to enhance energy security and decrease releases.
In its statement, the Commerce Department maintained that any suggestion of a policy change to permit extensive imports of fuel ethanol from the US was misleading. It refuted news reports that alleged that India was importing, or planned to import, substantial quantities of ethanol from the US to blending with petrol.
“As per the domestic policy framework, ethanol utilized to fuel blending under the Ethanol Blended with Petrol Programme is sourced entirely from domestic producers. There is no import of ethanol to fuel blending from the US,” it said.
The India-US joint statement on the framework to the interim trade agreement, announced on February 7, 2026, did not include ethanol among the items on which India agreed to work towards tariff reduction or elimination.
“India will eliminate or decrease tariffs on all US manufacturing goods and a wide range of US food and agricultural items, including dried distillers’ grains (DDGs), red sorghum to animal life feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional items,” the joint statement had said.
The two countries continue to negotiate the proposed interim trade agreement. The talks have have become greater complex after the US Supreme Court struck down the Trump administration’s reciprocal tariffs, following which the Office of the US Trade Representative (USTR) initiated Section 301 investigations into the trade policies of several countries, including India.
Published on August 6, 2026
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