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ISMA Defends India's Ethanol Blending Program, Citing Benefits for Farmers and Economy
9 Aug
Summary
- ISMA dismisses claims of vehicle engine damage from E20 ethanol blend
- Ethanol blending program has transferred over $15 billion to 50 million farmers
- E20 blend expected to save India $5-6 billion annually in oil imports
As of August 9th, 2025, the Indian Sugar & Bio-Energy Manufacturers Association (ISMA) has come out in strong support of the government's ethanol blending program, refuting claims that the E20 fuel (20% ethanol mixed with petrol) can damage vehicle engines.
In a recent statement, ISMA noted that the E20 blend has been thoroughly tested and certified as compatible with Indian vehicles by the Automotive Research Association of India (ARAI). The association also pointed to Brazil's decades-long experience with ethanol blends ranging from E20 to E100, without major issues.
ISMA emphasized that the ethanol blending program has been a "game-changer" for over 50 million farmers, with more than $15 billion transferred to them. The initiative has also improved the financial health of sugar mills, ensured timely payments to farmers, and helped manage excess sugar inventories, ultimately stabilizing sugarcane prices and protecting farmer incomes.
Furthermore, the E20 blend is expected to save India $5-6 billion annually by reducing crude oil imports, which account for over 85% of the country's consumption. ISMA described the ethanol blending program as a "national imperative" backed by rigorous scientific validation and global best practices.
