CCEA Approves Revision of Ethanol Procurement Prices

On 29th January 2025, the Cabinet Committee on Economic Affairs (CCEA) approved the revision of ethanol procurement prices for public sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25.

Key Points

Ethanol Price Increase: The ex-mill price of ethanol derived from C Heavy Molasses (CHM) will rise by 3%, from Rs. 56.58 to Rs. 57.97 per litre.
Ethanol Blending Programme: The revision aims to ensure adequate supply to meet the higher blending targets, stabilize prices, and provide fair rates for producers.
Progress in EBP Programme: Ethanol blending in petrol has increased significantly from 38 crore litres in ESY 2013-14 to 707 crore litres in ESY 2023-24, achieving a blending rate of 14.60%.
Environmental and Economic Impact: The programme has saved ₹1,13,007 crore in foreign exchange and substituted 193 lakh metric tonnes of crude oil. The government plans to achieve 18% blending by ESY 2024-25, advancing its 20% ethanol blending target to ESY 2025-26.
Infrastructure Enhancements: Measures include expanding ethanol distillation capacity, establishing Dedicated Ethanol Plants (DEPs), promoting multi-feed distilleries, and launching flex-fuel vehicles.
Alignment with National Goals: These steps support the Atmanirbhar Bharat initiative, enhance ease of doing business, and contribute to economic growth, including job creation in greenfield and brownfield sectors.