State-run oil marketing companies plan to buy 40% more ethanol to meet 20% blend target
State-owned oil companies in India plan a 40% increase in ethanol procurement in the current supply year to meet the 2025 goal of 20% ethanol blending in petrol. This includes a significant share of ethanol from grain-based sources, boosted by supportive government policies and pricing.
Budget with ET Tax calculator India aims to blend 20% ethanol into petrol by 2025 as part of its effort to reduce reliance on imported oil. In the ethanol supply year 2023-24, which began in November 2023 and ended in October 2024, the average national blending was 14.6%, with 7.07 billion litre of ethanol used up for the programme, according to the oil ministry data.
State oil companies, which control about 90% of the petrol retail market, purchased 6.79 billion litre for the blending.
In the current ethanol supply year that began in November 2024, state-run oil companies plan to purchase 9.73 billion litre for the blending programme, an official said.
This would include 3.91 billion litre of ethanol produced from sugarcane-related raw materials.
The balance of 5.82 billion litre is expected to be sourced from grain-based processors.
This would take the share of grain-based ethanol in the blending programme to 60%, compared to 27% in the ethanol supply year 2022-23. A slew of government policy measures, including attractive ethanol prices, capital support for setting up production facilities and assured offtake, has led to a boom in grain-based ethanol production.
A few years back, the government permitted the use of maize as well as damaged and surplus rice for producing ethanol.
This helped more states to contribute to the ethanol blending programme.
Previously, ethanol production was limited mainly to major sugar-producing states such as Uttar Pradesh, Maharashtra and Karnataka.
Every year, the Cabinet decides the prices of ethanol produced from sugarcane-related raw materials while oil marketing companies decide on other raw materials.
Ethanol produced from maize fetches ₹71.86 per litre, the highest among all raw materials.
Ethanol produced by fermenting surplus rice sourced from Food Corporation of India (FCI) fetches ₹58.50 per litre.
The rate of ethanol from damaged food grains is ₹64. Other rates are ₹65.61 (sugarcane juice), ₹60.73 (B-heavy molasses) and ₹57.97 (C-heavy molasses). Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrows Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd. View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Data Science SQL Server Bootcamp 2024: Transform from Beginner to Pro By - Metla Sudha Sekhar, IT Specialist and Developer View Program The alternative use of raw materials and their demand-supply situation influence the pricing of ethanol.
Prices of ethanol from all raw materials except C-heavy molasses haven't changed for the current supply year.
The Cabinet raised the price of ethanol from C-heavy molasses by 3% for this year.
