OMCs’ ethanol procurement bill crosses Rs 74,000 crore in ESY24-25 as maize emerges top feedstock
Public sector OMCs spent a record ₹74,004 crore on ethanol procurement in ESY 2024-25, with maize becoming the largest feedstock. Ethanol receipts reached 1,040 crore litres, while IOCL remained the biggest buyer, reflecting rapid expansion of India’s ethanol blending programme.
Public sector Oil Marketing Companies (OMCs) spent Rs 74,004 crore on ethanol procurement in Ethanol Supply Year (ESY) 2024-25, more than four times the Rs 17,705 crore spent in ESY 2020-21, the government told the Rajya Sabha.
Minister of State for Petroleum and Natural Gas Suresh Gopi gave the reply to an unstarred question from Rajya Sabha member Randeep Singh Surjewala on the production, procurement and pricing of ethanol. According to data shared by Bharat Petroleum Corporation Limited (BPCL) on an industry basis, Indian Oil Corporation Limited (IOCL) accounted for the largest share of procurement spend among the three PSU OMCs at Rs 31,983 crore in ESY24-25, followed by BPCL at Rs 21,889 crore and Hindustan Petroleum Corporation Limited (HPCL) at Rs 20,132 crore. For the ongoing ESY25-26, covering the period up to June 30, 2026, combined expenditure across the three OMCs stood at Rs 49,577 crore.
The feedstock mix has shifted markedly over the period, the data showed. Maize-based ethanol, which was negligible until ESY21-22, rose to become the largest single feedstock source at 498.49 crore litres in ESY24-25, ahead of sugarcane juice, sugar and sugar syrup at 165.31 crore litres and B-heavy molasses at 138.81 crore litres. Total ethanol receipts by OMCs from all feedstocks rose from 295.55 crore litres in ESY20-21 to 1,040.08 crore litres in ESY24-25, before easing to 717.29 crore litres in the part-year ESY25-26 period.
On pricing, the reply stated that the ex-mill price of sugarcane-based ethanol is fixed by the government, while grain-based ethanol prices are decided by the PSU OMCs, with the stated objective of keeping ethanol competitive against fossil fuel prices. The procurement price for sugarcane juice, sugar and sugar syrup-based ethanol has remained at Rs 65.61 per litre since ESY23-24, while maize-based ethanol was priced at Rs 71.86 per litre over the same period, according to the price schedule shared in the reply.
Among private oil marketing companies, Reliance BP Mobility Limited’s ethanol procurement rose from 2.58 crore litres in 2020-21 to 36.34 crore litres in 2025-26 till June, while Nayara Energy Limited’s volumes grew from 10.20 crore litres to 36.50 crore litres over the same period. Shell India Limited’s procurement remained comparatively small, rising from 0.01 crore litres to 1.62 crore litres.
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Source : ChiniMandi
