ICRIER urges temporary E15 ethanol blend to ease sugar and food-price pressure
ICRIER has recommended temporarily reducing India’s petrol ethanol-blending target from 20% to 15% during feedstock shortages and food-price spikes. The think tank also proposed importing 3–4 million tonnes of sugar at about 10% duty, arguing ethanol diversion has contributed to higher sugar retail prices.
What happened
ICRIER recommends India temporarily lower petrol ethanol blending to E15 during feedstock shortages and food-price spikes, alongside larger sugar imports and
Key facts
- Temporary ethanol blending reduction to 15% from 20%
- E20 target achieved in 2025-26
- Sugar import duty proposed at around 10%
- Sugar imports proposed at 3-4 million tonnes
- FCI rice price: ₹2,320 per quintal
- FCI average acquisition cost: about ₹3,889 per quintal
- Estimated FCI economic cost: over ₹4,100 per quintal
Why this matters
Companies with sugar sourcing, ethanol, or fuel-retail exposure should reassess supply partnerships and acquisition assumptions as policy may shift feedstock economics toward food availability.