In a setback for the sugar industry, the government has increased the prices of FCI rice-based ethanol, while keeping the cost of ethanol produced from sugar-based feedstocks unchanged for Ethanol Supply Year 2025-26 (November-October).

The government increased the price of FCI rice-based ethanol, providing relief for grain-based ethanol producers. On Tuesday, the oil marketing companies (OMCs) invited bids for the supply of 1,050 crore litres of Ethanol for ESY 2025-26.

The price of ethanol produced from surplus rice sourced from FCI has been fixed at ₹60.32 per litre for ESY 2025–26, compared to ₹58.50 per litre for ESY 2024–25, an increase of around 3 per cent. The revision corresponds to the increase in the rate of surplus rice for ethanol from FCI.

The reserve price for the sale of

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