Ethanol price revision proposal sent to cabinet for consideration: Report
The Oil Ministry has proposed an increase in ethanol prices for the Ethanol Supply Year (ESY) 2024-25, with the proposal now awaiting Cabinet approval. The price hike, expected to be around ₹4-5 per liter, follows recommendations from the Food Ministry and discussions with Oil Marketing Companies (OMCs). This increase aims to encourage ethanol producers and distilleries to meet India’s ethanol blending targets. Despite offers of 970 crore liters of ethanol from manufacturers, OMCs have allocated only 837 crore liters, with tenders issued for 916 crore liters for the 2024-25 cycle.
The Oil Ministry has finalised a proposal to increase ethanol prices for the Ethanol Supply Year 2024-25, which has been submitted to the Cabinet for final approval. According to a report by ET Now, the Cabinet is expected to approve the proposal soon, with a price increase of around Rs 4-5 per liter.
This decision follows discussions with the Food Ministry and Oil Marketing Companies (OMCs). The Food Ministry had previously recommended raising ethanol prices for the Ethanol Supply Year. The increase is intended to incentivize ethanol producers and distilleries to enhance production in alignment with India’s ethanol blending targets.
Ethanol producers in India are requesting an increase in ethanol prices from various feedstocks, citing that current prices are not viable.
OMCs have allocated around 837 crore liters of ethanol against 970 crore liters of offers submitted by manufacturers across the country for ESY 2024-25 – Cycle 1. OMCs had invited tenders for the supply of 916 crore liters of ethanol for ESY 2024-25.
Source Link : https://www.chinimandi.com/ethanol-price-revision-proposal-sent-to-cabinet-for-consideration/
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