Ethanol Procurement Price

Published on 25 Aug 2025

• The Cabinet Committee on Economic Affairs (CCEA) has increased the ethanol procurement price for Ethanol Supply Year 2024-25 (1st November 2024 to 31st October 2025).

• The Ethanol Blending Programme (EBP) of India targets to blend 20% ethanol into petrol by 2025-26, also known as the E20 target.

• India’s ethanol production mainly comes from fermentation of C Heavy Molasses (CHM).

• Molasses is a thick syrup byproduct of sugar production from sugarcane. 

• A Heavy Molasses (AHM) has the highest sugar content, followed by B Heavy Molasses and C-Heavy Molasses (CHM) with the lowest sugar content. 

• Ethanol Procurement Price refers to the ex-mill price at which Public Sector Oil Marketing Companies (OMCs) purchase ethanol from suppliers.

• The ex-mill price refers to the price at which ethanol is sold directly from the production facility (mill) before adding transportation, taxes, or other charges.

• The Ministry of Petroleum and Natural Gas (MoPNG) announced that Ethanol blending by OMCs has achieved an average blending of 14.60% in 2023-24.

Keywords:

Ethanol Procurement Price Ethanol Ethanol Blending Programme Cabinet Committee on Economic Affairs Public Sector Oil Marketing Companies OMCs Ministry of Petroleum and Natural Gas MoPNG Balance of payment