OMCs announce Rs 5.79 per litre incentive on maize-based ethanol

In a significant move to boost ethanol production from maize, Oil Marketing Companies (OMCs) have announced an additional incentive of Rs 5.79 per litre (Excluding GST) for ethanol sourced from the grain. This comes on top of the existing procurement price of Rs 66.07 per litre for maize-based ethanol, bringing the total effective price to Rs 71.86 per litre.

The incentive will be applicable for all ethanol supplies purchased by OMCs after 5th January 2024, effectively covering the remaining period of the Ethanol Supply Year (ESY) 2023-24. OMCs will disburse the incentive through credit notes or by directly incorporating it into purchase orders.

The increased incentive is expected to attract greater participation from maize-based ethanol producers, potentially expanding domestic ethanol production capacity and contributing to India’s ambitious goal of achieving 20% ethanol blending in petrol by 2025.

Grain Ethanol Manufacturers Association (GEMA) was one of top voices in the industry requesting critical intervention from the Government to ensure uninterrupted supply of raw material/feedstocks (Rice /Maize/Damaged Foodgrains) for production and supply of ethanol to OMCs in the current ethanol supply season.

Earlier, the Association had requested the Government to increase the price of ethanol procured from Maize and DFG either separately or simultaneously so that the same could be procured at market price.

C.K. Jain, President of the Grain Ethanol Manufacturers Association, said, “We would like to express our thanks to Hon’ble Food Minister Piyush Goyal ji and Hon’ble Petroleum Minister Hardeep Singh Puri ji for providing an additional incentive of Rs 5.79 per litre for ethanol sourced from maize (against Rs 10 per litre asked for). We would also like to request them for considering our plea for increasing the price of DFG based ethanol as well.”