Sugar Mills Cash In as India's Ethanol Blending Program Falls Short

India's ethanol-blending program has failed to deliver on its promise of lower fuel costs and reduced oil imports, but sugar mills have emerged as major beneficiaries through assured demand, subsidized expansion, and increased profits.

The program aimed to reduce oil imports by increasing the blend of ethanol in gasoline. However, despite modest foreign exchange savings, oil import dependence has risen instead.

Experts question the political links within the sector and the rising import of corn for ethanol production. The debate has shifted from energy security to who truly gained from the policy, with E20 now the default fuel.