In a relief to grain-based ethanol producers, the government has increased the price of FCI rice-based ethanol.
On September 23, 2025, Oil Marketing Companies (OMCs) issued tenders for the supply of approximately 1,050 crore litres of Denatured Anhydrous Ethanol for Cycle 1 of the Ethanol Supply Year (ESY) 2025–26.
Ethanol produced from different feed stocks namely sugar cane juice, sugar, sugar syrup/B heavy molasses/ C heavy molasses /Damaged food grains/Surplus rice sourced from FCI / maize being procured by OMCs and same has been mentioned in quantity bid form.
According to the tender documents, for the period from November 1, 2025, to October 31, 2026, OMCs will procure ethanol produced from damaged food grains, surplus rice from FCI, and maize at below rates:
The price of ethanol made from surplus rice sourced from FCI has been set at Rs 60,320 per kilolitre (KL) for ESY 2025–26, up from Rs 58,500 per KL in ESY 2024–25.
Speaking to Bioenergy Times, Arushi Jain, Joint Secretary of the Grain Ethanol Manufacturers Association (GEMA), said, “The mandatory 40% FCI grain requirement for Q1, Q2, and Q3 supplies will help keep grain prices under control. The revision in FCI ethanol price is to the extent of 3.11%, which corresponds to the increase in the rate of surplus rice for ethanol from FCI.”
Meanwhile, the price for ethanol produced from sugar-based feedstock remains unchanged. However, industry representatives are pressing the government to raise it, pointing to the increase in Fair and Remunerative Price (FRP) of sugarcane for the 2025–26 sugar season.
The tender requires bidders to submit ethanol supply quantities in kilolitres (KL) by feedstock and quarter, covering November 1, 2025, to October 31, 2026. The validity of bids will be till 31-07-2026. Q1 quantity bid is being split into two parts i.e. Q1 (Nov.25) and Q1 (Dec.25 & Jan.26).
Quantity bids for ESY 2025–26 are being opened for registered bidders under the long-term ethanol procurement policy.
According to the sources in ESY 2024–25, as of August 31, 2025, the total contracted ethanol qunaity was 1159.13 crore litres and total receipt quanity is around 820 crore litres.
