India is one of the largest producers of a number of agriculture commodities and the European Union (EU) is one of the largest export markets for India. In 2015-16, India’s export of agricultural commodities to the EU was more than five times higher than the EU’s exports to India.

This analysis of the Government of India’s National Policy on Biofuels argues that while the policy of ethanol blending in petrol is in the right direction, it is fraught with several problems which are rendering the approach ineffective. The most critical ones are the lack of sugar cane for producing ethanol and the policy on pricing of it.

The study examines the "Ethanol Blending Programme" in India. The study examines the ethanol blended petroleum pricing mechanism in India in comparison with the globally accepted price mechanism.

This new study examines demand and supply aspects of the ethanol blending policy (EBP) of the Government of India. It examines the main sectors using ethanol. The preparedness of the automobile industry is a major factor in the successful implementation of this policy. In this context the issue of compatibility of vehicles to different levels of ethanol blending is also analyzed.