All India Distillers Association seeks higher maize ethanol prices

The All India Distillers Association (AIDA) has requested the Indian government to increase the purchase price of maize-based ethanol to 75 rupees per liter, an approximately 9 percent increase from the current rate of 68.86 rupees per liter.

Industry representatives state that rising raw material costs are threatening the economic viability of production. Specifically, maize prices have risen from 17–18 rupees per kilogram to approximately 27 rupees per kilogram over the past year. AIDA President Vijendra Singh noted that producers are also facing increased interest and operational expenses.

The demand follows a tender issued by Bharat Petroleum Corporation Limited (BPCL) for the procurement of approximately 1,100 crore liters of ethanol to meet the 20 percent blending target in petrol. The tender reportedly reduced the purchase price for maize-based ethanol from 71.86 rupees to 68.86 rupees per liter.

AIDA is also calling for a clear, long-term roadmap for the Ethanol Blending Program (EBP) and has requested an increase in the purchase price for rice-based ethanol from the Food Corporation of India (FCI).