Oil Marketing Companies Elevate Procurement Price for Maize-Based Ethanol, Check Out the Surge!

To uplift the ethanol blending programme in India, an important decision has been announced by the oil marketing companies (OMCs). Marking a substantial increase, the procurement price of ethanol produced from maize for the ongoing 2023-24 supply year has been raised to Rs 71.86 per litre, reflecting a notable boost from the previous rate of Rs 5.79 per litre. This strategic move is particularly necessary as it positions the procurement price of maize-based ethanol among the highest across all sources utilized in India's ethanol production. 

Sources for Ethanol Production

The diverse sources for ethanol production in the country include sugarcane-based molasses, as well as grain-based feedstocks. Within the sugarcane spectrum, ethanol can be derived from sugarcane juice or syrup, followed by B-heavy molasses and C-heavy molasses. In the realm of grains, the primary sources are damaged food grains or maize.

Hike in Procurement Price of Ethanol

The recent decision to enhance the procurement price follows closely on the heels of another substantial hike in the procurement price of ethanol produced from C-heavy molasses, elevated by Rs 6.78 per litre. This dual initiative is poised to have a far-reaching impact on the augmentation of ethanol production, encompassing both sugarcane-based molasses and grains. The collective objective is to achieve a commendable 15 percent blending of ethanol with conventional fuels during the 2023-24 period.

India's broader vision for its ethanol blending programme extends beyond the immediate future, with ambitious plans to achieve a remarkable 20 percent ethanol blending with petrol by the year 2025. 

The increased procurement price for maize-based ethanol not only incentivizes production but also encourages diversification in ethanol sourcing. This, in turn, contributes to a more resilient and adaptable ethanol industry. The momentum gained from these strategic decisions is expected to ripple through the sector, fostering innovation, and investment, and ultimately paving the way for achieving India's ambitious ethanol blending targets.

In essence, the recent adjustments in procurement prices demonstrate a proactive and dynamic approach by the OMCs, reflecting their commitment to aligning with national energy goals. As India navigates the complex terrain of energy transition, these measures show the importance of ethanol as a key player in the sustainable energy matrix, playing a pivotal role in reducing carbon emissions and enhancing energy security.