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India's E20 ethanol policy faces protests and compatibility

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2026-08-27 07:01 UTC → 2026-09-09 16:31 UTC · added ~~removed~~

India’s mandatory 20% ethanol-blended petrol (E20) programme faces intensifying political and industry scrutiny. While the government maintains the blend reduces CO2 emissions and saves foreign exchange, opposition leaders have escalated criticism regarding economic and technical impacts. In August 2026, political opposition expanded, with the Congress party labeling the policy ‘short-sighted’ and ‘anti-people.’ Jairam Ramesh alleged that diverting agricultural feedstocks like sugarcane, maize, and rice toward ethanol has driven up food prices, noting significant increases in sugar and jaggery costs. Arvind Kejriwal further claimed that diverting 25 lakh tonnes of sugarcane has spiked domestic sugar prices and alleged the government is pressuring automakers to remain silent about the risks of E20, which he claims could be ‘extremely hazardous’ to vehicles manufactured before 2023. Technical disputes persist. While state-run oil companies reject contamination claims, leaked internal communications suggest executives at Maruti Suzuki, Tata Motors, and Mahindra have privately discussed issues. Industry testing reportedly identified high moisture and chloride levels affecting performance. ~~In response to these~~ However, the Society of Indian Automobile Manufacturers (SIAM) recently withdrew a previous warning regarding possible damage from contaminated fuel, citing a need for further data verification. To address consumer concerns, ~~Chief Economic Adviser V Anantha Nageswaran recommended~~ the petroleum ministry is discussing reintroducing E10 petrol (10% ethanol blend) to protect ~~approximately 75 to 80 million~~ older ~~two-wheelers. The petroleum ministry is currently discussing the feasibility of~~ vehicles. One proposal involves offering E10 through existing premium 95-octane brands to avoid new infrastructure costs. Additionally, as ethanol production has begun to exceed E20 requirements, the ~~Bureau of Indian Standards~~ government is ~~working to make chloride contamination limits—currently voluntary at 3 parts per million (PPM)—mandatory~~ exploring new uses for ~~oil marketing companies~~ the surplus, such as higher blends for flex-fuel vehicles. Meanwhile, researchers have suggested a more flexible approach, allowing blending to ~~ensure fuel purity and~~ temporarily drop to E15 during supply shortages to protect ~~engines.~~ food markets.

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