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  • Writer's pictureTritech

OMCs hike procurement prices for ethanol

India's state fuel retailers have raised procurement prices for ethanol made from C-heavy molasses by 6.87 rupees per litre to 56.28 rupees per litre, according to industry sources and a document reviewed by Reuters on Friday.

The move is aimed at boosting production of ethanol, which is used for blending with petrol. More than 10% of a litre of petrol sold in India is ethanol and the nation has set a target to raise blending to 20% by 2025.

Earlier this year, the government directed sugar mills not to use cane juice or syrup to produce ethanol, as New Delhi tried to increase sugar supplies by curtailing ethanol output.


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