Government Approves Ethanol Price Hike to Boost Blending Targets

The Indian government has approved a new administered ex-mill price of ethanol derived from C-heavy molasses at Rs 57.97 per litre for the Ethanol Supply Year (ESY) 2024-25, up from Rs 56.58 per litre. This 3% price increase is part of the Ethanol Blended Petrol (EBP) programme and aims to ensure a steady ethanol supply to meet the country’s rising blending targets.

Strengthening Ethanol Supply and Farmer Benefits

The ethanol price hike comes at a crucial time when India is pushing for higher ethanol blending in petrol to reduce dependency on fossil fuels. In an official statement, the government emphasized that GST and transportation charges will be paid separately, ensuring sugarcane farmers benefit from fair pricing. The move aligns with India’s broader goals of promoting biofuels and energy security.

Economic and Environmental Gains from Ethanol Blending

Over the past decade, the ethanol blending programme has significantly contributed to India’s economy and environmental sustainability. According to government data, ethanol blending has resulted in foreign exchange savings of Rs 1,13,007 crore, while also reducing carbon emissions and enhancing energy security.

The Road Ahead for Ethanol Blending

With the government’s commitment to increasing ethanol adoption, the 3% price revision for C-heavy molasses ethanol will play a pivotal role in achieving the target. As India advances towards higher ethanol-petrol blending ratios, this price adjustment ensures a steady and sustainable ethanol supply.

Key Takeaways:

The ethanol price for C-heavy molasses increased to Rs 57.97 per litre for ESY 2024-25.
The 3% hike supports ethanol availability and India’s biofuel goals.
The EBP programme has already saved Rs 1,13,007 crore in foreign exchange.
The move benefits sugarcane farmers, with separate GST and transport charges.

The ethanol blending push continues to be a win-win for farmers, the economy, and the environment, reinforcing India’s transition towards cleaner energy sources.