New Delhi, Apr 29 (KNN) An agribusiness trade mission from the United States has proposed that India import ethanol and corn to use as feedstock for meeting its target of 20 per cent ethanol-blended petrol by 2025. 

This comes after India limited the use of sugar for ethanol production.

"We believe there's a great opportunity to support India's advancement in increasing ethanol production," said Alexis Taylor, United States Undersecretary for the Department of Agriculture, who is leading the trade mission to New Delhi, reported ET.

Taylor has met with Indian officials from the agriculture, external affairs, and commerce ministries. India plans to start using 20 per cent ethanol-blended petrol (E20) from 2025 onwards.

However, due to lower sugarcane production, the government in December banned the use of cane juice and B-heavy molasses for ethanol production. It also capped diversion of 1.7 million tonnes of sugar for ethanol in 2023-24.

The U.S. is a major ethanol producer and consumer but also imports ethanol. "Our ability to import gave investors certainty to invest in our ethanol market," Taylor said, suggesting U.S. ethanol and corn imports could help mobilise investment in India's ethanol production.

India is promoting maize as an alternative feedstock to boost ethanol output while ensuring sugar availability. 

However, with maize production estimated to drop to 32.4 million tonnes from 38 million tonnes last year, traders say supplies may be insufficient once distilleries start using it.

(KNN Bureau)