One source, who requested anonymity, mentioned that the price revision is being prioritized to encourage production and achieve the blending goals.

Last week, Cooperation Minister Amit Shah emphasised the need for a multi-dimensional approach to biofuel manufacturing and assured that India would meet its 20 per cent ethanol blending target by 2025-26, ahead of the original 2030 deadline. Ethanol prices, set by the government, have remained unchanged since the 2022-23 season (November-October). At present, ethanol produced from cane juice is priced at Rs 65.61 per litre, while ethanol from B-Heavy and C-Heavy molasses is priced at Rs 60.73 and Rs 56.28 per litre, respectively.

According to the sources, the government views the ethanol blending program as crucial for fulfilling its green energy commitments and enhancing the financial stability of sugar mills.

Official data reveals that ethanol blending in India reached 13.3 per cent by July of the current season, an increase from 12.6 per cent during the 2022-23 season.