Recently, Oil Marketing Companies (OMCs) invited bids for the supply of around 1050 crore litres of Denatured Anhydrous Ethanol for cycle 1 of Ethanol Supply Year 2025-26. The response exceeded the required quantity of 1050 crore liters with over 1776 crore liters of offers submitted by the manufacturers across the country.
Out of total offers for 1776.49 crore litres, 471.63 crore litres is offered from sugarcane based feedstocks and 1304.86 crore litres is offered from grain based feedstocks.
Feedstock wise offers
| Feedstock | Offers (Crore Litres) |
|---|---|
| Sugarcane Juice (SCJ) | 299.48 |
| B-Heavy Molasses (BHM) | 158.70 |
| C-Heavy Molasses (CHM) | 13.45 |
| Sugarcane Based Total | 471.63 |
| FCI Rice | 396.60 |
| Damaged Food Grains (DFG) | 76.37 |
| Maize | 831.89 |
| Grain Based Total | 1304.86 |
| Grand Total | 1776.49 |
The government is actively implementing the Ethanol Blended with Petrol (EBP) Programme, which enables OMCs to sell petrol blended with ethanol. The response from ethanol manufacturers has been very encouraging, especially as the government has recently taken various measures to boost ethanol production.
We are currently awaiting the allocation from the OMCs. Once received, further updates will be provided by ChiniMandi.
In a relief to grain-based ethanol producers, the government has increased the price of FCI rice-based ethanol. The price of ethanol produced from surplus rice sourced from FCI has been fixed at Rs. 60,320 per kilolitre (KL) for ESY 2025–26, compared to Rs. 58,500 per KL for ESY 2024–25.
The price of ethanol produced from sugar-based feedstock remains unchanged. However, the industry is urging the government to increase the price, citing the rise in the Fair and Remunerative Price (FRP) of sugarcane for the upcoming sugar season 2025–26.
