The government will likely to raise the ethanol price between ₹1.50 and ₹1.70 a litre for the current ethanol supply year (ESY) that began in November 2024. However, the price increase is likely to be confined only to ethanol made from sugarcane juice/syrup and B-heavy molasses, sources said, adding the rates of ethanol made from maize, damaged foodgrains (rice) and C-heavy molasses may remain unchanged.
Until ESY 2023-24, ethanol prices were ₹71.86/litre if made from maize, ₹65.61/litre from sugarcane juice/syrup, ₹64/litre from damaged foodgrain (rice), ₹60.73/litre when made from B-Heavy Molasses (CHM) and ₹56.28/litre from C-heavy molasses (CHM). There was also a separate price for ethanol made from FCI’s subsidised rice supplied at ₹20/kg, which has since been discontinued.
The Petroleum Ministry has finalised the rates at which the oil marketing companies will buy the ethanol and the Cabinet is likely to soon approve the plan, the sources said.
