Ethanol Procurement Boost: India Targets 20% Blending by 2025

The Indian government approved a 3% price increase for ethanol derived from C-heavy molasses to encourage production, aiming for 20% ethanol blending in petrol by 2025-26. Rates for other feedstocks remain unchanged. The move supports farmers and the environment while helping to meet higher blending targets.

The Union Cabinet has sanctioned a 3% hike in the procurement price for ethanol produced from C-heavy molasses, now set at Rs 57.97 per litre for the 2024-25 supply year. This adjustment aligns with India's strategic push towards achieving a 20% ethanol blending in petrol by the 2025-26 timeline.

This decision, aimed at elevating ethanol production from sugar industry by-products, was made during a Cabinet Committee on Economic Affairs meeting led by Prime Minister Narendra Modi. Meanwhile, prices for ethanol derived from B-heavy molasses and sugarcane juice remain constant.

The Minister of Information and Broadcasting, Ashwini Vaishnaw, emphasized the environmental and agricultural benefits of ramping up ethanol production using C-heavy molasses. Public sector oil marketing companies are set to begin procurement at the revised rates, which are part of the government's ongoing Ethanol Blended Petrol programme.

(With inputs from agencies.)