Early Tuesday, the United States Trade Representative (USTR) highlighted India’s ban on U.S. ethanol imports as one of several “unfair trade practices” affecting American exporters, amid rising trade tensions between Washington and its key trading partners.
In its 2025 National Trade Estimate Report, the USTR identified 10 major trade barriers imposed by several important trading partners, including India, China, Japan, the European Union, and others.
Th USTR argues that these practices distort trade and negatively impact American manufacturers, exporters, and workers.
A post from the USTR on X emphasized the need for fair market access, stating, “India bans imports of U.S. ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol, requiring approval and issuance permits, and hasn’t approved an import permit for fuel ethanol since 2005. Securing market access to India and Thailand for exports of U.S. fuel ethanol would result in at least an additional $414 million in annual export value.”
2/10: India bans imports of U.S. ethanol for fuel use. Similarly, Thailand restricts imports of fuel ethanol, requiring approval and issuance permits, and hasn’t approved an import permit for fuel ethanol since 2005.
Securing market access to India and Thailand for exports of…
— United States Trade Representative (@USTradeRep) April 7, 2025
The Indian government continues to push for higher domestic ethanol blending targets.
India currently does not allow fuel ethanol imports for blending and also mandates licensing for ethanol imports for non-fuel purposes under restrictions set by the Directorate General of Foreign Trade (DGFT).
In the current Ethanol Supply Year (ESY) 2024-25, ethanol blending in petrol reached 19.7 per cent in February, while the cumulative average ethanol blending from November 2024 to February 2025 stood at 18 per cent.
