USDA Targets Global Markets Including India to Expand US Ethanol Exports

The US Department of Agriculture (USDA) has launched a four-part strategy to expand international markets for American ethanol and other crop-based biofuels, with a focus on increasing ethanol blending, reducing trade barriers and opening new markets for US agricultural products.

US Agriculture Secretary Brook Rollins unveiled the American Biofuels Trade Outlook at the 17th annual Growth Energy Biofuel Summit in Washington, D.C. The initiative comes after US ethanol exports reached a record 2.2 billion gallons in 2025, valued at about $4.7 billion.

The first pillar of the strategy seeks to increase on-road ethanol blending in overseas markets, particularly through wider adoption of E10 gasoline, which contains 10% ethanol. USDA plans to work with around 20 countries that have adopted or are considering E10 policies, with Latin America and Southeast Asia identified as important areas for market expansion. Mexico and Vietnam are among the priority markets.

The department also plans to address implementation challenges in countries where ethanol-blending policies already exist. In Vietnam, for instance, USDA intends to engage with authorities to establish or strengthen blending requirements, while Mexico is expected to receive increased technical support aimed at expanding ethanol consumption.

The second pillar focuses on reducing restrictions imposed by other countries on crop-based biofuels. The European Union is a particular focus, with USDA highlighting its 7% cap on crop-based biofuels in total fuel use as a constraint on market opportunities for US producers.

Rollins said the outlook “charts the path forward for biofuels exports by building on the historic success that we have already seen so far.” She also said USDA wanted to open more markets for US biofuels across road transport, aviation and marine fuel applications.

The third pillar involves using USDA's Market Access Programs and the America First Trade Promotion Program to develop untapped markets. USDA has identified India, Indonesia and Japan as Asian markets with longer-term potential, while Pakistan and Nigeria have also been identified as emerging opportunities.

The fourth pillar involves greater engagement with international organisations, including the International Civil Aviation Organization and International Maritime Organization, to expand opportunities for biofuels in aviation and maritime transport.

The strategy is also closely linked to US farm markets because greater ethanol exports could create additional demand for corn and other agricultural feedstocks. USDA's latest data show that fuel ethanol accounted for 36% of total US corn use in 2024-25, while exports continued to reach record levels.

Rollins said the new trade outlook would “build on the progress that we have already made” and make biofuels a long-term component of American agriculture, energy and security policy.