Oil Marketing Companies (OMCs) have announced an additional incentive for ethanol produced from damaged food grain and maize.
This decision align with the government aim to ensure that its goal of achieving a 12 percent ethanol blending rate remains on track. This move comes after the Food Corporation of India (FCI) temporarily stopped supplying subsidised rice.
The price hike amounts to an increase of ₹3.71 per litre with immediate effect. The purpose of this increase is to provide support to distilleries so that they can maintain their production levels.
Now, the total incentive amount for damaged food grain and maize will be ₹8.46 per litre and ₹9.72 per litre, respectively. This includes the total incentive amount for damaged food grain and maize, which also covers the interim incentive given on August 7.
On August 7, the purchase price of ethanol by OMCs was increased by ₹4.75 per litre to ₹60.29 per litre when the biofuel is made from damaged or broken rice. Additionally, the price of maize-based ethanol was raised by Rs. 6.01 to Rs. 62.36 per litre.
These measures are believed to have been implemented due to the closure of distilleries resulting from the suspension of rice supply for ethanol production by the FCI.