In a relief to grain-based ethanol producers, the government has increased the price of FCI rice-based ethanol.
On 23rd September 2025, Oil Marketing Companies (OMCs) invited bids for the supply of around 1,050 crore litres of Denatured Anhydrous Ethanol for Cycle 1 of the Ethanol Supply Year (ESY) 2025–26.
Ethanol produced from different feed stocks namely sugar cane juice, sugar, sugar syrup/B heavy molasses/ C heavy molasses /Damaged food grains/Surplus rice sourced from FCI / maize being procured by OMCs and same has been mentioned in quantity bid form.
In the tender document, it is mentioned that for ESY 2025–26, i.e., for the period from 01.11.2025 to 31.10.2026, OMCs shall procure ethanol sourced from Damaged Food Grains, Surplus Rice sourced from the Food Corporation of India (FCI), and Maize at the following rates:
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.
Speaking to ChiniMandi, Arushi Jain, Joint Secretary of the Grain Ethanol Manufacturers Association (GEMA), said, “The mandatory 40% FCI grain requirement for Q1, Q2, and Q3 supplies will help keep grain prices under control. The revision in FCI ethanol price is to the extent of 3.11%, which corresponds to the increase in the rate of surplus rice for ethanol from FCI.”
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.
The tender document specifies that bidders shall quote ethanol quantities in KL to be supplied by them against the requirement of OMCs, feedstock wise – quarter wise for the period of 1st November 2025 to 31st October 2026 in this quantity bid. The validity of bids will be till 31-07-2026. Q1 quantity bid is being split into two parts i.e. Q1 (Nov.25) and Q1 (Dec.25 & Jan.26).
Quantity bids for the ESY 2025-26, period of 1st November 2025 – 31st October2026 are being opened for registered bidders as per long term ethanol procurement policy.
As per sources, in ESY 2024-25, till August 31, 2025, total contracted ethanol qunaity was 1159.13 crore litres and total receipt quanity is around 820.52 crore litres.
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