The Oil Ministry has finalised a proposal to increase ethanol prices for the Ethanol Supply Year 2024-25, which has been submitted to the Cabinet for final approval. According to a report by ET Now, the Cabinet is expected to approve the proposal soon, with a price increase of around Rs 4-5 per liter.
This decision follows discussions with the Food Ministry and Oil Marketing Companies (OMCs). The Food Ministry had previously recommended raising ethanol prices for the Ethanol Supply Year. The increase is intended to incentivize ethanol producers and distilleries to enhance production in alignment with India’s ethanol blending targets.
Ethanol producers in India are requesting an increase in ethanol prices from various feedstocks, citing that current prices are not viable.
OMCs have allocated around 837 crore liters of ethanol against 970 crore liters of offers submitted by manufacturers across the country for ESY 2024-25 – Cycle 1. OMCs had invited tenders for the supply of 916 crore liters of ethanol for ESY 2024-25.
