U.P. Congress president Ajay Rai wrote to Prime Minister Narendra Modi demanding an urgent review of the ethanol‑blended fuel policy and a strategy to curb rising sugar prices, warning that foreign‑exchange savings could evaporate if sugar imports surge.

  • Ajay Rai calls for an immediate review of the ethanol‑blend policy
  • Rising sugar prices threaten foreign‑exchange savings
  • Older‑vehicle owners need a lower‑blend option like E10

Uttar Pradesh Congress president Ajay Rai addressed Prime Minister Narendra Modi on August 24, urging a swift reassessment of the ethanol‑blended fuel (E20) policy and highlighting the fiscal impact of soaring sugar prices. Rai argued that the anticipated foreign‑exchange gains from reduced oil imports could be nullified if domestic sugar shortages force higher imports.

Background

Rai reminded the Prime Minister that he had previously written on July 7, raising scientific, economic, environmental and consumer‑interest questions about ethanol‑blended fuels. The Oil Ministry’s primary justification for the policy is to diminish reliance on petroleum imports and bolster energy security.

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Ethanol‑Blend Policy and Sugar Prices

In his letter, Rai stressed that the real accounting of ethanol production, sugar output, domestic prices and imports must be made transparent to the public. He warned that any shortage of domestically produced sugar could trigger costly imports, eroding the foreign‑exchange savings the policy promises.

Government Ministers Under Scrutiny

Rai also singled out Union Food Minister Prahlad Joshi for failing to curb the steep rise in sugar and other food prices, noting Joshi’s new assignment to the Education Ministry adds further pressure. He reiterated his demand for the removal of Union Ministers Nitin Gadkari and Hardeep Singh Puri from the cabinet, accusing them of neglecting consumer interests.

Why This Matters

BozokMedia analysis shows that India’s push for higher ethanol blends intersects with agricultural markets, especially sugarcane. A policy shift could reverberate through rural economies, affect fuel pricing, and alter the country’s foreign‑exchange outlook.

"If the ethanol policy is revised without addressing the surge in sugar prices, India risks compromising both its energy security and food affordability," says energy analyst Dr. Rajat Singh.
Did You Know?: In 2023, India’s ethanol production hit a record 1.5 million tonnes, a 30 % jump from the previous year.

Frequently Asked Questions

Can all vehicles run on E20 fuel?
Many older models face technical challenges with E20, prompting the government to consider re‑introducing E10 as a consumer‑friendly alternative.

How do rising sugar prices affect the ethanol policy?
Ethanol is largely derived from sugarcane; a shortage that forces sugar imports raises the cost of ethanol production, undermining the policy’s economic rationale.