Oil cos raise price of ethanol from FCI rice to INR 60.32 per litre
This story was originally published at 12:50 IST on 24 September 2025
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NEW DELHI – State-owned oil marketing companies have raised the price of ethanol made from rice bought from Food Corp. of India to INR 60.32 per litre from INR 58.50 per litre for ethanol supply year 2025-26 (Nov-Oct), according to a tender released Tuesday. "The basic rate of ethanol procured by OMCs from FCI Rice shall be 60.32 Rs/Ltr. Transportation charges and GST shall be paid extra," the tender said.
The oil companies have invited bids for the supply of around 1.05 billion litres of ethanol for the first cycle of the upcoming ethanol supply year starting November.
Distillers buy surplus rice from FCI to make ethanol, which is bought by oil companies to meet their blending requirements. India has been blending ethanol with petrol to reduce crude oil import dependency, promote green mobility, and boost the rural economy. Amid piling rice stocks in government godowns, the government has been allocating the grain for biofuel production. To attract distillers and offload stocks, the government reduced the price of FCI rice to INR 2,250 per 100 kg from INR 2,800 per 100 kg.
For the upcoming ethanol supply year, the government has allocated 5.2 million tonnes of rice, in line with the current year. From Nov. 1, FCI will sell surplus rice to distillers at a revised rate of INR 2,320 per 100 kg.
The price of ethanol produced from sugar-based feedstock remains unchanged for 2025-26, the tender showed. However, the industry has been urging the government to increase the price, citing the rise in the fair and remunerative price of sugarcane for the upcoming sugar season 2025–26, which has been fixed at INR 355 per 100 kg.
"Distilleries along with a copy of signed contract with OMCs regarding supply of ethanol may approach the FCI Depot of their choice," the tender said. "FCI will allocate the rice as per the quantity of ethanol allocated to distilleries in their contracts with OMCs," according to the tender. End
Reported by Pallavi Singhal
Edited by Avishek Dutta
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