Government Proposes Ethanol Price Hike, Targets 20% Blending by 2025-26

The government is mulling over increasing ethanol prices for the upcoming season starting November 2024. A joint secretary-led committee has started discussions on the proposal, aiming to achieve a 20% ethanol blending target by 2025-26. The decision also seeks to benefit sugar mills and boost green energy commitments.

The government is considering a proposal to increase ethanol prices for the season starting November 2024, while also pushing for diversification of feedstocks, according to sources. This initiative is part of its strategy to achieve a 20 per cent blending target by 2025-26.

A committee, led by a joint secretary from the petroleum ministry, has conducted initial discussions on the proposal. The proposed revision of ethanol prices will be based on the fair and remunerative price of sugarcane, sources noted.

'The price revision is being considered on priority to incentivize production and meet our blending goals,'' a source said on condition of anonymity. Last week, Cooperation Minister Amit Shah emphasized a multi-dimensional approach to biofuel manufacturing and expressed confidence that India would hit the 20 per cent ethanol blending target by 2025-26, ahead of the earlier deadline of 2030.