Published 17:48 IST, January 29th 2025
Cabinet Hikes Ethanol Procurement Price For Public Sector OMCs
Further, GST and transportation charges would be separately payable, as in the past, in the interest of sugarcane farmers.

The Union Cabinet approved a revision of ethanol procurement price for public sector oil marketing companies under the Ethanol Blended Petrol Programme for the 2024-25 supply year from November 1, 2024 to October 31, 2025.
Union Minister Ashwini Vaishnaw had announced that the administered ex-mill price of ethanol derived from C Heavy Molasses (CHM) had been raised to Rs 57.97 per litre from Rs 56.58 per litre.
The approval would not just facilitate the continued policy for the government in providing price stability and remunerative prices for ethanol suppliers, but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment, the minister said.
Further, GST and transportation charges would be separately payable, as in the past, in the interest of sugarcane farmers.
"Increase in prices of CHM Ethanol by 3% will assure sufficient availability of ethanol to meet the increased blending target," he said.
Additionally, the government has also been implementing an ethanol blended petrol programme, wherein the OMCs sell petrol blended with ethanol up to 20% This programme is being implemented across India to promote the use of alternative and environment friendly fuels.
This will also reduce the dependence on imports to meet energy requirements and boost the agriculture sector.
In the last 10 years, ethanol blending in petrol by public sector OMCs has resulted in approximate savings of over Rs 1.13 lakh crore of foreign exchange and crude oil substitution of about 193 lakh tonnes.
Ethanol blending from public sector OMCs has increased from 38 crore litres in ethanol supply year 2013-14 to 707 crore litre achieving average blending of 14.60% in ethanol supply year 2023-24.
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Updated 17:48 IST, January 29th 2025