This refers to ‘Fuel for thought’ (April 29). Ethanol is a renewable fuel derived primarily from sugarcane and corn. Its use can significantly reduce dependence on fossil fuels and help lower greenhouse gas emissions. But the shift to 100 per cent ethanol vehicles is not without drawbacks. One major concern is the potential strain on agricultural resources, as large-scale ethanol production may compete with food crops, leading to higher food prices. Ethanol also has a lower energy density compared to petrol, which can result in reduced fuel efficiency and shorter driving ranges. Vehicles would require specific modifications to run entirely on ethanol, which may increase costs for consumers and manufacturers. Careful planning and balanced policies are essential to address their limitations.

Bal Govind

Noida

An FTA of significance

The free trade agreement (FTA) signed between India and New Zealand, aiming to double bilateral trade to over $5 billion annually, is significant on several counts. By eliminating duties on all Indian exports to New Zealand — valued at $711 million in 2024-25 — it creates opportunities in labour-intensive sectors such as textiles, jewellery and leather. While New Zealand will gain zero-duty access for around 70 per cent of its exports, including wood, wool and fruits, India has prudently safeguarded sensitive sectors, particularly dairy, along with items such as onions, peas, almonds and most meat products. A network of well-crafted FTAs with like-minded economies can enhance India’s strategic stability and leverage in an increasingly polarised trade order.

M Jeyaram

Sholavandan, TN

Options market reforms

This refers to ‘SEBI weighs uniform regime for options strike prices’ (April 29). The proposal to allow exchanges to add intra-day strike prices, especially at-the-money options during sharp market moves, is a welcome step towards improving liquidity and efficiency. However, the current system’s lag in introducing new strikes often forces traders to use illiquid far-off contracts or accept wider spreads, increasing costs and risk. A uniform framework across exchanges would reduce inconsistencies and help market participants hedge more effectively. SEBI could consider clear guidelines on the frequency and conditions for adding strikes.

A Myilsami

Coimbatore

Published on April 29, 2026