&w=3840&q=100)
India reviews US push to lift ethanol curbs amid trade deal talks
India is reviewing the United States' (US') request to lift restrictions on ethanol imports as it negotiates a wider trade deal with Washington to avoid punitive tariffs, news agency Bloomberg reported on Friday.
The development was confirmed by senior industry officials, who added that the US was intensely lobbying for the same.
India at present does not allow imports of ethanol as fuel, and levies hefty duties on such imports for non-fuel purposes.
'Yes, the US has been lobbying for opening up ethanol imports for the past several weeks, but the request should not be heeded, or else all the investments made into putting up the domestic capacities for producing ethanol would come into question,' a senior industry official said.
Bloomberg reported that US negotiators want India to allow shipments of the biofuel for blending with gasoline, according to people familiar with the matter, a change from current rules that promote domestic supply and permit overseas purchases of ethanol only for non-fuel use.
The lobbying for the opening up of ethanol imports from the US comes at a time when India's ethanol production from sugarcane has fallen behind that from grains for the second successive supply year.
In the ethanol supply-year 2024-25 (November to October) till March, oil marketing companies (OMCs) have allocated supplies of around 9.96 billion litre of ethanol.
Of this, around 66 per cent will have to come from grains, while the balance will come from sugarcane. Till a few months back, both the feedstocks had supplied equal quantities of ethanol.
Meanwhile, the Bloomberg report said that US President Donald Trump said in Qatar on Thursday that New Delhi had offered to abolish all tariffs on US goods — comments that were walked back only hours later by India's Foreign Minister S Jaishankar, who said talks were ongoing. Commerce Minister Piyush Goyal is set to arrive in the US this weekend for further negotiations.
American farmers have been lobbying for access to the world's most populous nation, and high-profile figures like US Vice-President JD Vance have bemoaned trading conditions that have left India 'effectively closed off', the agency reported.
The National Corn Growers Association has called on the Trump administration to include corn and corn-based products, such as ethanol and distillers' dried grains, in any trade deal with India.
India has been aggressively promoting biofuels. India has achieved almost 20 per cent blending in gasoline in February, five years ahead of its 2030 target. It's pushing for the use of raw materials like sugar cane juice, corn, rotten potatoes, and damaged food grains to make ethanol.
India's state-owned oil refiners, meanwhile, are concerned that the US may sell ethanol at low rates to capture the market, only to later raise prices, two of the people said, a move that would hurt their business.
According to the oil ministry, these processors plan to lift ethanol purchases by almost 50 per cent from a year earlier to 10 billion litres in the current supply year, which began in November.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
23 minutes ago
- Hindustan Times
Indian govt report in 2022 foresaw China rare earth export crisis
As Indian manufacturers are scrambling to deal with supply-chain disruptions caused by China's restrictive policies on the export of rare earth metals, in many of which it has a near monopoly, experts are pointing to an early warning of this — in a 2012 strategy paper prepared by a steering committee headed by the then mines secretary Vishwapati Trivedi after a similar crisis caused after Beijing restricted supplies of the critical materials that are needed in the auto, space and clean energy industries. Also Read: 'China deal done': US to lower tariffs to 55%, allow Chinese students for higher ed Back then, they added, India felt the heat of Chinese squeeze and on August 9, 2011, the government set up an 11-member steering committee to develop a strategy paper on status and availability of rare earth elements (REE) and energy critical elements (ECE). The committee was chaired by the mines secretary and co-chaired by chairman of the Centre for Study of Science Technology (C-STEP). Members included senior officials and experts from the Department of Science & Technology (DST), the Geological Survey of India, the Bhabha Atomic Research Centre (BARC), the Department of Atomic Energy, the Defence Research & Development Organization (DRDO) and the chairman of India Rare Earth Ltd. Also Read: China can't afford double standards in fight against terror: S Jaishankar The forward of the committee's report titled ''Rare Earths and Energy Critical Elements: a Roadmap and Strategy for India', published in July 2012, said: 'In view of the increased demand of REE and near monopoly of supply from China, there is a need to develop national policies and implementation strategies for ensuring indigenous supply of REE… A Steering Committee was constituted by the ministry of mines with the ultimate intention of preparing a strategy paper for the government, providing short, medium and long term options along with proposals for specific policy & legislative interventions.' Also Read: 'Gratitude to Indian Navy': China on rescue of crew aboard cargo ship which caught fire off Kerala coast The report was blunt about Beijing's approach. 'China has been the major supplier of rare earths all over the world. Even though it has only 37% of global RE resources, it has captured the worldwide market to the extent of 97%. The low cost and efficient production process enabled China to monopolize the rare-earth market, forcing rare earth operations around the world to close down. Indian Rare Earths Ltd (IREL), which was once a leader in export of rare earth compounds had to shut down its operation in 2008,' the report added. 'Over the last couple of years China has imposed restrictions and curtailed its export by over 30% citing domestic demands as the reason. This unexpected decline has restarted rare earth operations once again throughout the world,' the report said. The same thing is happening again. Indian industries are suffering due to shortage of the critical minerals. According to a Reuters report published in Hindustan Times on Wednesday, automobile majors such as Maruti Suzuki have cut near-term production targets because of rare earth shortages. 'Government departments, particularly the ministry of commerce and industry, are holding hectic meetings with industry and other stakeholders to resolve the supply crisis. Government is using diplomatic channels asking Beijing to relax supply curbs for the Indian industries,' one of the people mentioned in the first instance said. The ministries of mines, commerce and external affairs did not respond to an email query on this matter. China's curbs on exports of rare earth materials have been officially raised through diplomatic channels by India, especially in view of the impact on manufacturers of electric vehicles, people familiar with the matter said. The issue reportedly figured in a meeting between Indian ambassador Pradeep Rawat and China's vice foreign minister Sun Weidong in Beijing on June 5. 'China's move was primarily aimed at the US and the impact on India was collateral damage. We are hopeful that the matter will be resolved soon,' one of the people said. It is not clear how China's deal with the US —the two countries reached a framework agreement that will now have to be approved by their respective Presidents —will affect this. The matter is expected to figure in discussions during a visit to India by Sun Weidong, a former Chinese ambassador to New Delhi, beginning on Thursday, the people said. Sun is visiting India to continue discussions with foreign secretary Vikram Misri aimed at normalising bilateral ties following the end of the military face-off in the Ladakh sector of the Line of Actual Control (LAC) last October. Auto manufacturers affected by the curbs on rare earth exports too have sought to reach out to Chinese authorities but without much success so far, the people said. Two days after India and China reached an understanding on withdrawing forces from the two remaining 'friction points' on the LAC last October, Prime Minister Narendra Modi and President Xi Jinping met in the Russian city of Kazan and agreed to revive several mechanisms to restore normalcy in ties and to address the long-standing border dispute.
Mint
31 minutes ago
- Mint
Ivanhoe Restarts Part of Congo Copper Mine Impacted by Flooding
(Bloomberg) -- Ivanhoe Mines Ltd. has restarted underground operations in part of its giant copper mine in the Democratic Republic of Congo while another section remains offline after seismic activity caused flooding deep below ground. In an update late Wednesday, the Canadian company said equipment and mining crews returned on June 7 to the western side of the Kakula mine, with underground operations there resuming in a 'conservative manner.' Ivanhoe investors and traders in metal markets are paying close attention to the status of the Kamoa-Kakula complex — one of the world's most important copper mines — three weeks after the disruptions were first announced. The incident is part of a series of supply-side disruptions that have raised concerns over tighter global supplies. Mining in Kakula's eastern side is expected to start 'imminently,' although activities will focus on a new area east of existing workings. Water levels there have stabilized. Still, draining won't begin until next quarter. For the remainder of 2025, underground crews will focus on ramping up the western side of Kakula, developing a new mining area on the eastern side and increasing production from the Kamoa area. It's still too early to outline plans for 2026 and 2027, the company said. Shares in Ivanhoe dropped 5.9% in regular trading in Toronto Wednesday. Zijin Mining Group Co. and Ivanhoe both hold 39.6% of Kamoa-Kakula, while Congo's government has a 20% stake. Zijin also owns more than 10% of Ivanhoe and CITIC Metal is the Canadian miner's biggest shareholder. More stories like this are available on
India Today
an hour ago
- India Today
Denmark approves US military bases amid tensions over Greenland
Denmark's Parliament has passed a contentious bill allowing the establishment of US military bases on Danish soil, sparking criticism over national sovereignty and renewed tensions involving legislation, which expands a 2023 military access agreement with the Biden administration, passed with 94 votes in favor and 11 against. It permits a broader US military presence beyond existing airbase access, and now awaits formal approval from King Frederik argue the move undermines Danish sovereignty and paves the way for deeper American influence, particularly in light of President Donald Trump's previous attempts to purchase Greenland, a strategically important and mineral-rich Arctic territory under Denmark's realm. In response to lawmakers' concerns, Danish Foreign Minister Lars Lkke Rasmussen emphasized that Denmark retains the right to terminate the agreement should theUS make moves to annex Prime Minister has previously condemned US interest in the island, asserting that Greenland is not for sale and warning against viewing it as a development comes amid broader geopolitical tensions in the Arctic and highlights the delicate balance Denmark faces as a NATO ally seeking to maintain control over its semi-autonomous territories.(With inputs from Associated Press)Must Watch
