U.P. Congress chief calls for Modi review of ethanol fuel policy

Ajay Rai, president of the Congress party's Uttar Pradesh unit, has written to Prime Minister Narendra Modi requesting a comprehensive review of the ethanol-blended fuel policy being promoted by the central government. The appeal comes amid growing concerns about the policy's broader economic implications, particularly its impact on sugar prices in a state where the commodity plays a significant role in the agricultural economy.

In his communication to the Prime Minister, Rai referenced an earlier letter dated July 7, in which he had raised multiple concerns spanning scientific, economic, environmental, and consumer interest dimensions of the ethanol-blended fuel initiative. The Congress leader's renewed call for policy review suggests the concerns outlined in the July correspondence remain unaddressed.

The ethanol fuel blending policy, which mandates the mixing of ethanol with petrol, has been promoted by the government as an environmentally sustainable measure that reduces crude oil imports. However, critics argue the policy diverts sugarcane from food and industrial use, potentially affecting sugar availability and pricing in domestic markets.

Uttar Pradesh, a major sugar-producing state, is particularly sensitive to policies that could influence agricultural commodity prices. The Congress party has sought to position itself as a voice for farmers and consumers affected by government policies that may inadvertently create economic pressures in rural and urban areas alike.