Back Feb 15, 2025

Feedstock economics and policy implications for India’s ethanol sector

This analysis examines the Indian ethanol production landscape for 2024-25, considering government policies, feedstock economics, and crucial additional factors that shape the market’s dynamics. The government’s emphasis on ethanol blending necessitates a comprehensive understanding of these elements for all stakeholders.

Government Pricing Structure:

The government’s ethanol procurement prices per litre aim to diversify feedstock use and ensure a stable supply:

Sugarcane Juice: ₹65.61

B-Heavy Molasses: ₹60.73

C-Heavy Molasses: ₹57.97

Maize: ₹66.07

Broken Rice: ₹64.00

FCI Rice: ₹58.50

Comparative feedstock economics

Profitability depends on feedstock cost, ethanol yield, and byproduct revenue. The following table summarises key economic indicators :


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