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

Oil Marketing Companies (OMCs) have announced an additional incentive of Rs 5.79 per litre (excluding GST) for ethanol sourced from maize, in an effort to boost ethanol production. This incentive is in addition to the existing procurement price of Rs 66.07 per litre for maize-based ethanol, resulting in a total effective price of Rs 71.86 per litre. The incentive will be applicable for ethanol supplies purchased by OMCs after January 5, 2024, covering the remaining period of the Ethanol Supply Year 2023–24. The move is expected to encourage greater participation from maize-based ethanol producers, potentially expanding domestic ethanol production capacity and contributing to India’s goal of achieving 20% ethanol blending in petrol by 2025. The Grain Ethanol Manufacturers Association expressed gratitude for the additional incentive and requested further consideration for increasing the price of damaged foodgrain (DFG) based ethanol.

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