Cabinet Approves New Ethanol Procurement Prices for EBP
In a significant move to strengthen India’s ethanol blending program (EBP), the Cabinet has approved revised procurement prices for ethanol. The decision is aimed at boosting ethanol production, reducing dependence on fossil fuels, and supporting fuel retailers in meeting blending targets.
“New Pricing Structure for Ethanol Procurement”
The revised ethanol procurement prices will enable fuel retailers to secure ethanol at competitive rates, ensuring a steady supply for the EBP initiative. The government’s decision comes as part of its broader strategy to enhance domestic ethanol production and achieve the set blending targets in a timely manner.
This move is expected to benefit sugar mills and other ethanol producers, encouraging them to increase output while ensuring fair pricing in the supply chain. By adjusting procurement rates, the government aims to make ethanol production more lucrative, thereby reducing reliance on crude oil imports and promoting clean energy alternatives.
Ethanol Blending Program and Its Impact
India’s ethanol blending program is a crucial component of the country’s energy transition plan. The initiative focuses on incorporating ethanol into petrol to reduce carbon emissions, lower fuel costs, and enhance energy security. The government has set an ambitious target of achieving 20% ethanol blending in petrol by 2025-26, a goal that requires continuous investment and policy support.
The revised ethanol procurement prices are expected to streamline supply chains and encourage more ethanol production from various feedstocks, including sugarcane and grain-based sources. This will help India reduce its dependence on crude oil imports while supporting farmers and the biofuel industry.
Boost for the Biofuel Industry
The Cabinet’s approval of revised ethanol pricing aligns with the government’s commitment to promoting renewable energy and sustainability. By incentivizing ethanol production, India aims to create a robust biofuel ecosystem that benefits farmers, sugar mills, and fuel retailers.
The ethanol blending program has already shown promising results, with blending levels increasing in recent years. The latest pricing adjustments will provide further momentum to the initiative, ensuring a more sustainable and cost-effective energy mix.
With ethanol playing a key role in India’s energy transition, the new procurement rates are expected to encourage further investments in biofuel production, strengthen the rural economy, and contribute to a greener future.
