Government approves new mechanism for procurement of ethanol by OMCs

29-Jan-2025 06:19 PM

The Union Cabinet’s approval of the new procurement mechanism for ethanol is a significant step in supporting the Ethanol Blending Program (EBP) in India.

By revising the price of ethanol for the 2024-25 ethanol supply year, the government aims to stabilize the market, ensure fair returns for suppliers, and help reduce dependence on crude oil imports.

The price increase for ethanol made from C-heavy molasses—rising from Rs 56.58 to Rs 57.97 per liter—reflects these efforts.

In addition to the price revision, the decision to pay GST and transportation expenses separately is designed to benefit sugarcane farmers.

The goal of 20% ethanol blending in petrol is an ambitious target that will further help India reduce foreign exchange outflows and cut down on its crude oil imports.

As the ethanol blending program continues to grow, it will also contribute to the overall energy security and sustainability of the country.

This move comes after a decade of ethanol blending, which has already saved India over Rs 13,000 crore in foreign exchange and replaced a significant amount of crude oil imports.

It seems like the program’s scope will keep expanding, potentially providing even more benefits in the future.

What do you think about this approach to ethanol blending? It seems to have a lot of potential to shape India’s energy and agricultural landscape positively!