India-US Trade Turns a Corn-er: Implications for India’s Ethanol Policy

Ethanol blending has been in the news in recent weeks, amid debates over vehicle compatibility, the push for sustainable fuels at COP30, and the ongoing US–India trade negotiations. Reports suggest that the trade negotiations have yielded a critical consensus: India will allow maize (corn) imports from the US specifically for ethanol production. While the final deal is still being ironed out, this potential allowance signifies a strategically astute move by India. If implemented with careful regulation (to protect domestic farmers), this policy could effectively navigate the core trade-off between the ethanol programme’s demand for feedstock and the imperative to control food price inflation. The ethanol blending programme began in the early 2000s as a way to manage recurring sugar surpluses but truly gained momentum after the National Policy on Biofuels (2018), which streamlined incentives, expanded feedstock options, and positioned ethanol within a broader energy security and ...