The Oil Ministry has finalized a proposal to increase ethanol prices for the Ethanol Supply Year (ESY) 2024-25, which has been submitted to the Cabinet for final approval. According to ET Now, the Cabinet is expected to approve the proposal soon, with a price hike of approximately Rs 4-5 per liter.
This move comes after consultations with the Food Ministry and Oil Marketing Companies (OMCs). The Food Ministry had earlier recommended raising ethanol prices for the upcoming Ethanol Supply Year (ESY). The price increase is aimed at encouraging ethanol producers and distilleries to boost production, in line with India’s ethanol blending targets.
Ethanol producers in India have been requesting higher prices for ethanol derived from various feedstocks, citing that current rates are not sustainable.
OMCs have allocated around 837 crore liters of ethanol for ESY 2024-25 – Cycle 1, out of 970 crore liters offered by manufacturers nationwide. The OMCs had called for tenders to procure 916 crore liters of ethanol for the upcoming supply year.
