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.