The government is taking steps to boost ethanol production following the Food Corporation of India’s (FCI) decision to halt the supply of broken rice for biofuel production. Now, Oil Marketing Companies (OMCs) are providing an additional incentive for ethanol produced from damaged food grain and maize.
As per news report published in ETNow, OMCs are likely to announce an extra incentive of ₹3.71 per litre on ethanol produced from damaged food grain and maize.
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.
