Oil Marketing Companies (OMCs) have received an enthusiastic response to their recent call for bids to supply approximately 1,050 crore litres of Denatured Anhydrous Ethanol for Cycle 1 of the Ethanol Supply Year (ESY) 2025-26. Ethanol manufacturers across the country submitted offers totalling over 1,776 crore litres — significantly surpassing the required volume.
Of the total 1,776.49 crore litres offered, 471.63 crore litres are derived from sugarcane-based feedstocks, while the remaining 1,304.86 crore litres are from grain-based sources.
This development comes as part of the government’s continued efforts to advance the Ethanol Blended with Petrol (EBP) Programme, which mandates the blending of ethanol with petrol to reduce import dependency and promote cleaner fuels. The surge in participation reflects growing industry confidence, supported by recent government initiatives aimed at enhancing ethanol production capacity.
ChiniMandi has reported that allocations from OMCs are still awaited, and further details will be shared once those allocations are confirmed.
In a positive move for grain-based ethanol producers, the government has raised the price of ethanol produced from surplus rice sourced from the Food Corporation of India (FCI). For ESY 2025–26, the price has been set at Rs. 60,320 per kilolitre (KL), up from Rs. 58,500 per KL in ESY 2024–25.
Meanwhile, the price for ethanol produced from sugar-based feedstocks remains unchanged. However, the industry is pushing for a price revision, pointing to the increased Fair and Remunerative Price (FRP) for sugarcane set for the upcoming 2025–26 sugar season.
