Budget 2025 Ethanol Price Hike: Modi Cabinet Approves Higher Rates and ₹16,300 Crore Critical Minerals Mission
Budget 2025 Ethanol Price Hike: Ahead of the Union Budget 2025, the Modi Cabinet has approved two key decisions that will benefit farmers, the agriculture sector, and the economy. The Cabinet Committee on Economic Affairs (CCEA) has given the green light to revised ethanol procurement prices and sanctioned a ₹16,300 crore National Critical Minerals Mission (NCMM) to boost self-reliance in mineral resources.
Ethanol Price Hike to Benefit Farmers
In a major relief to sugarcane farmers, the government has increased ethanol prices under the Ethanol Blended Petrol Program (EBPP). The revised ex-mill price of ethanol from C-Heavy Molasses (CHM) has been increased from ₹56.58 per liter to ₹57.97 per liter, effective from November 1, 2024, to October 31, 2025.
The decision is aimed at reducing crude oil dependency, promoting biofuel adoption, and saving foreign exchange reserves. Union Minister Ashwini Vaishnaw emphasized that increasing ethanol usage is part of the government’s green energy transition strategy.
No Change in B-Heavy Molasses and Sugarcane-Based Ethanol Prices
While C-Heavy Molasses ethanol prices have been increased, the government has kept the B-Heavy Molasses (BHM) ethanol price unchanged at ₹60.73 per liter. Similarly, ethanol produced from sugarcane juice, sugar, and syrup will continue to be priced at ₹65.61 per liter.
India Targets 18% Ethanol Blending in Petrol
The government has extended its target for 20% ethanol blending in petrol from 2025-26 to 2030. In the current Ethanol Supply Year (2024-25), oil marketing companies (OMCs) aim to achieve an 18% ethanol blend, moving toward energy self-sufficiency.
₹16,300 Crore National Critical Minerals Mission Approved
The Modi Cabinet has also approved a ₹16,300 crore National Critical Minerals Mission (NCMM) to boost domestic and offshore mineral exploration. This mission aims to reduce dependency on mineral imports and ensure India's self-reliance in critical minerals.
Key Highlights of NCMM
Accelerated mineral exploration, mining, processing, and recovery.
Focus on fast-tracking approvals for key mineral projects.
Financial incentives for critical mineral exploration.
Encouraging public and private sector investments in overseas mineral assets.
Strengthening trade relations with resource-rich nations.
Union Minister Ashwini Vaishnaw stated that NCMM will enhance India’s capacity to secure critical minerals, ensuring supply chain resilience and industrial growth.
These decisions by the Modi government will empower farmers, boost the ethanol industry, and enhance India’s mineral independence. As the Union Budget 2024 approaches, these initiatives set the stage for a stronger agricultural and energy sector while reducing dependency on foreign resources.
