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  • Writer's pictureTritech

Govt said to have hiked ethanol rates fearing fall in blending as distilleries close operation

In order to ensure 12 per cent blending target is achieved this year after the Food Corporation of India (FCI) halted rice supply for ethanol production , the government is believed to have raised prices of ethanol made from rice and maize to help distilleries restart production. However, top officials refused to comment saying notification is yet to be released.

According to trade sources, purchase price of ethanol by oil marketing companies (OMCs) has been increased by ₹4.75/litre to ₹60.29/litre when the biofuel is made from damaged/broken rice (purchased from open market) for remaining part of current ethanol year (until Oct 31, 2023). Also the new rate of ethanol will be ₹62.36/litre when it is to be produced from maize, an increase of ₹6.01/litre.

Both the new rates is effective from August 7, the sources said. However, a top official of the government, while not denying the approval of the price hike said that notification is yet to be published. Some other officials also did not deny the hike in prices.

Many distilleries stopped operation in July after FCI stopped issuing rice and if they do not operate during August-October, there is a chance of fall in blending rate from current level, industry earlier informed the government demanding the mid-season price revision.


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