Do not permit ethanol imports under India-US trade framework: ISMA

 

The Indian Sugar and Bio-energy Manufacturers Association (ISMA) has opposed the proposed discussion on allowing ethanol imports under the India-US trade framework, citing that such a move would disrupt the payment of fair and remunerative prices (FRP) to sugarcane farmers and lead to underutilisation of domestic ethanol production capacity. In a communication to the Commerce Minister, the industry has voiced concerns regarding the potential removal of restrictions on ethanol imports for fuel blending. It stated that if imports of ethanol for fuel are allowed, it would dilute the significant gains made in domestic capacity building, investment and job creation. It has been said that allowing such imports would undermine the significant gains made in building domestic capacity, generating employment and attracting over Rs 40,000 crore in investments since 2018, during which ethanol production capacity grew by more than 140%, as per a report.

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