New Delhi: The Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to maintain restrictions on fuel ethanol imports, warning that allowing such imports could undermine national energy security and self-reliance in green fuels. The industry body expressed concern as the United States, backed by its farm lobby groups, has been actively lobbying India to lift these restrictions and allow ethanol imports for fuel use as part of broader trade negotiations, hoping to access India's large ethanol fuel market.

Negotiations are ongoing, with Indian commerce officials engaging US counterparts, but no policy changes allowing fuel ethanol imports have been implemented as of this month. ISMA Director General Deepak Ballani, in a letter to Commerce Minister Piyush Goyal, demanded that the government maintain current restrictions on fuel ethanol imports for blending purposes and continue supporting indigenous ethanol production.

Ballani also requested the government reassure stakeholders on "policy stability," thereby encouraging continued investment and farmer-centric development.