Countering Inflation in India

Of late, the Indian Government has been facing a miserable time countering the raising inflation. The failure to counter inflation can't be attributed to a party in particular, since the situation would have been the same whichever party might rule. I'm sure the government and top honchos had already done their analysis on inflation though none has been revealed yet. Here is mine.

Inflation is generally due to a rise in demand for a particular essential commodity that triggers a price rise in almost everything. So to counter inflation, it's very important to identify the root cause of inflation and find an alternative for it. The current inflation is more rooted at the rising oil/fuel price than the food. It's the rising oil/fuel price that has led to food price raise. So widespread adoption of alternate fuels would be the single most effective strategy to counter inflation. United States has realized this and has adopted ethanol as an alternative fuel. Ethanol as a fuel for cars and two wheelers is already being used in Brazil. What might have stopped the Indian government from using ethanol?

India being the second largest producer of sugarcane in the world should have no issues manufacturing ethanol and using it as a fuel. Ethanol could be used either mixed with petrol (E50 ,E80 etc) or wholly (E100) as a fuel in cars and two wheelers with a minor modification of the fuel injector. A country which has earlier adapted to using gas cylinders in vehicles in a large scale wouldn't have much issues for making a switch to ethanol. I expected that atleast Reliance would capitalize on this situation but Reliance made a poor display of intuition and innovation by shutting down its petrol bunk network instead of adopting such alternate fuels.

I wonder ,
If the Indian government has already thought about this?.
Why nobody has said a word about Ethanol though it's being used widely in US?
Didn't the journalists know this?.
Is it a tried and dropped solution?
Could there be any political reasons behind it?


What could have been the reason for not using ethanol??
Feel free to express your views.