The grain ethanol manufacturers have sought a revision in current ethanol rate ₹58.50/litre which was based on when the Food Corporation of India (FCI) was selling rice at ₹20/kg. The revised price should be ₹70.71/litre after the government announced the FCI rice would be sold at ₹28/kg for the distilleries, according to Grain Ethanol Manufacturers Association (GEMA).
“We have requested the petroleum ministry for a revision in the ethanol price after the FCI rice price has been fixed,” said C K Jain, president of GEMA.
The Food Ministry on January 7 informed FCI that ethanol manufacturers should be sold rice at a fixed rate of ₹2800/quintal, and no additional transport cost should be added. Prior to the decision, the food ministry in August 2024 had allowed distilleries to buy rice from FCI at average auction price at the weekly e-auction taking place and also allocated 23 lakh tonnes (lt) until October 2024.
