ETHANOL PROCUREMENT RATE
Drought threatens India's 20% ethanol blending target as food takes priority
India faces a significant challenge in its ethanol production due to the lowest monsoon rainfall experienced in over a decade. This situation has prompted New Delhi to prioritize food security over its ethanol blending targets. Estimates suggest that the ethanol blending ratio may decrease this supply year from 20% to around 15%. Producers are being squeezed by increased corn prices and reduced purchasing prices for ethanol.
PSU oil firms float tender to buy 150 mn litres of biodiesel at Rs 88/litre
Indian oil marketing companies are inviting bids for 150 million litres of biodiesel over a three-month period. The procurement will begin in November 2026 and aims to reduce dependence on imported crude oil. Supplies will be sourced from used cooking oil and other feedstocks, enhancing the domestic biodiesel market. Vendors must meet strict quality and delivery requirements throughout the procurement phase.
Govt should hike maize-based ethanol procurement rate by 9% to Rs 75 per litre: AIDA
The All India Distillers’ Association (AIDA) has approached the government with a request to elevate the maize-based ethanol procurement price to Rs 75 per litre. As maize prices continue to climb, AIDA expressed fears regarding the viability of grain-based distilleries and noted that current ethanol production plants are underutilized, which adversely affects profit margins.
These large-caps have ‘strong buy’ & ‘buy’ recos and an upside potential of up 32%, according to analysts
History tells us that there is no way you can time the markets or predict its movement. But one thing can certainly be said: If the macro matrix, which at this point of time is being determined by oil prices globally, stays disturbed, the bears will rule the street for some more time.
India needs integrated energy storage policy to build resilience against geopolitical shocks: S&P Global
Gauri Jauhar emphasizes the importance of energy resilience for India's future energy security and storage policies. An integrated framework for storage across various energy sources is essential for long-term stability. India's refining sector plays a crucial role in managing crude import dependence and generating foreign exchange earnings. The transition to clean energy and green hydrogen will occur gradually while India remains an attractive destination for energy investments.
Crude surged. Why didn’t India’s petrol prices?
As the West Asia conflict drove up oil costs, India kept a much larger rise from reaching the pump. This explainer dives into how protection came from diversified supplies, a tax cut, losses absorbed by fuel retailers and an ethanol programme built before the crisis.
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Government should adopt flexible approach to ethanol-blended petrol programme: ICRIER paper
A research paper recommends flexibility in India's ethanol blending program targets. It suggests maintaining E20 as a long-term goal while allowing temporary E15 reductions. This approach would respond to agricultural shocks and manage economic costs effectively. The paper advocates for a flexible feedstock strategy to avoid food market pressure.
Sugar prices are rising on tight supply and strong demand: Which sugar stocks could benefit most?
India is currently experiencing a sugar shortage, caused by shorter production yields and increased consumer demand. While government initiatives are in place to stabilise prices, they may not adequately address the root supply problems. Additionally, global conditions, such as Brazil prioritizing ethanol production, keep international sugar costs high. Experts foresee a sustained tight market in the coming seasons, leading to greater profitability for sugar firms.
Sugar rush on Dalal Street: Stocks soar up to 59% in August, but are valuations turning risky?
Sugar stocks have witnessed remarkable growth on Dalal Street this August, with several firms recording substantial increases in share prices attributed to rising sugar values. Nevertheless, analysts remain split regarding the sustainability of these valuations. The sector's progress is supported by positive fundamentals and ethanol blending mandates, yet investors are advised to keep a vigilant eye on potential policy shifts and global market trends.
Farmers in flood-prone Kosi in Bihar see a pot of gold in E20
Maize cultivation has significantly boosted incomes in Bihar's Kosi plains. Farmers are now earning double their previous earnings from this crop. The ethanol industry and poultry feed demand are major drivers. This agricultural shift has spurred rural economic growth and development. Farmers now seek government support for assured procurement at MSP.
Flex reflections from Brazil: India’s ethanol push faces lessons from Brazil’s Proalcool crisis
India debates ethanol mandates, drawing lessons from Brazil's Proalcool program. Brazil's initial success faced a late 1980s crisis due to falling oil and rising sugar prices. India's reliance on agricultural cycles creates similar vulnerabilities and fiscal losses. The sugar lobby wields significant influence, impacting government policy decisions. India must plan its energy roadmap to avoid foreign oil traps and domestic agricultural cages.
Govt says E20 fuel safe for vehicles, defends ethanol blending programme
The government has defended its ethanol blending program, stating no engine damage has been found. Extensive testing and field experience confirm E20 petrol is safe for vehicles. This program strengthens India's energy security and shields consumers from oil price volatility. Public sector oil companies incur under-recoveries to maintain stable fuel prices. Ethanol blending represents a strategic investment in energy security and farmer welfare.
Sugar industry seeks ethanol price revision as blending share drops to 28% from 73%
The sugar industry is urging for revised ethanol procurement prices and extended blending targets due to a sharp decline in its contribution to the national ethanol program. They are advocating for accelerated promotion of Flex-Fuel Vehicles to boost ethanol demand.
Govt allows Nafed, NCCF to sell maize to ethanol makers at base rate of Rs 2,291/quintal
Nafed and National Cooperative Consumers' Federation of India (NCCF) will procure maize at a minimum support price of Rs 2,090 per quintal in the 2023-24 crop year and supply to the distilleries at a mutually agreed rate of Rs 2,291 per quintal, a senior food ministry official told PTI.
Govt hikes ethanol price to Rs 65.60 per litre
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi raised the price of ethanol extracted from sugarcane juice to Rs 65.60 per litre from Rs 63.45 per litre for the supply year beginning in December 2022. The rate for ethanol from C-heavy molasses has been increased to Rs 49.40 per litre from Rs 46.66 per litre currently
Cabinet approves increase in ethanol price, cotton support
The Cabinet Committee on Economic Affairs (CCEA) also raised prices of sugarcane-based ethanol by up to ₹1.47 per litre for blending with petrol for the supply year 2021-22.
Government hikes ethanol price for doping in petrol by up to Rs 3.34 per litre
The move will help farmers get remunerative price while also cutting down oil imports, I&B Minister Prakash Javadekar said. As much as 10 per cent ethanol is doped in petrol.
Maharashtra's sugar industry seeks permission to make ethanol from sugar
The government has already increased rate of ethanol procured by oil companies for their blending program.
Food Ministry not in favour of ethanol price increase
The Food Ministry seems to be not in favour of increasing ethanol price from the current Rs 40.85 per litre as the rate of molasses has fallen due to bumper crop.
5% hike in ethanol price to raise margins by 0.5%: ICRA
The price of ethanol for procurement by the OMCs for blending with petrol has increased to Rs 40.85 per litre.
Dharmendra Pradhan rejects demand for ethanol price hike
Ethanol, a byproduct of the sugar manufacturing process, is mixed with petrol to reduce emissions and cut the country’s dependency on imports.
Government to make 10% ethanol blending mandatory from next year
At present, it is compulsory to blend 5 per cent ethanol with petrol, but oil marketing companies (OMCs) are able to do around 2 per cent.
Oil firms float tender for 97 crore litres of ethanol
The three OMCs- IOC, BPCL, HPCL sought bids from ethanol manufacturers by January 12 to procure 97 cr litres of sugarcane extract for mixing in petrol.
Sugar stocks shoot up as government fixes price for ethanol
In a bonanza for sugar mills, the government yesterday fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol.
Government fixes Rs 48.5-49.5 price for ethanol procurement by oil marketing companies
Govt today fixed a price of Rs 48.50-49.50 per litre for procurement of ethanol for blending with petrol, a rate much higher than the price oil cos presently pay to buy the sugarcane extract.
PSU oil firms like IOC, BPCL and HPCL invite EoI for ethanol at new price
PSU oil companies have decided on a base price of Rs 44 per litre for procuring ethanol from sugar mills, rejecting supply of 36 crore litre citing higher price.
Moily directs Oil companies to issue fresh tenders for ethanol procurement
To meet its annual demand of 105 crore litre for its ethanol blending program (EBP), oil companies have already procured 21 crore litre from domestic sources.
Ethanol may be procured locally; Moily rejects bids by global companies
Moily said, "We will float fresh tenders and encourage Indian sugar industry to supply ethanol at much cheaper rates."
Ethanol blending in fresh price hurdle
After a spat between OMCs and sugar mills over the pricing of ethanol blended petrol, two chemical companies have questioned mandatory blending.
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