# Bioethanol: Trading

How India's government sets ethanol prices by feedstock

Source page: https://www.materialinsights.org/energy/bioethanol/trading/

How India's government sets ethanol prices by feedstock What this tab covers How it is bought and sold: buyers and sellers, price benchmarks and who publishes them, exchanges, contract types, traders, how Indian buyers price it, recent price points, and good sources to follow.

#### Who buys, and where

- EU blenders and traders in Rotterdam (ARA)
- Canada, Japan, Korea, Philippines and Colombia importers
- India buys denatured ethanol for industry, not fuel

#### Who sells, and from where

- US Gulf and Midwest producers via rail to Houston
- Brazil (Santos) when sugar is weak
- Netherlands re-exports

#### Price benchmarks

| Benchmark | Publisher | Basis |
|---|---|---|
| **Platts Chicago Argo ethanol** | S&P Global | daily spot, US$/gal |
| **Ethanol T2 FOB Rotterdam** | Platts / Argus | daily spot, euro/m3 |
| **CEPEA/ESALQ hydrous and anhydrous ethanol indicators** | CEPEA | weekly, Sao Paulo, R$/litre |
| **OMC administered procurement prices by feedstock** | Government of India / OMCs | per ethanol supply year, Rs/litre ex-distillery |

#### Exchanges

| Venue | Contract | Notes |
|---|---|---|
| **CME Group** | Chicago Ethanol (Platts) futures, financially settled | main US hedge (indicative) |
| **B3 (Brazil)** | hydrous ethanol futures | thin liquidity (indicative) |

#### Contract types

- Annual OMC tenders in India with fixed prices by feedstock and allocation by distillery
- US rail and barge spot and monthly contracts indexed to Chicago Argo
- Brazil spot and term contracts with distributors indexed to CEPEA

#### Traders and distributors

- Major grain houses (ADM, Cargill, Bunge) and fuel traders (Vitol, Trafigura, Glencore) (indicative)
- Raízen and Copersucar in Brazil (indicative)

#### How Indian buyers price it

- OMC procurement prices set by the government by feedstock each ESY: Rs 65.61 juice, Rs 60.73 B-heavy, Rs 57.97 C-heavy (2025-26, sugar tile); maize Rs 68.86 and FCI rice Rs 60.32 for 2026-27 (ThePrint, Oct 2026)
- GST on ethanol for blending is 5% (indicative)
- Fuel ethanol imports are restricted, so there is no import parity for blending ethanol (indicative)

#### Recent price points

| Date | Price | Basis | Source |
|---|---|---|---|
| Oct 2026 | **Rs 68.86 per litre** | maize ethanol, ESY 2026-27 OMC price (down from Rs 71.86) | Deccan Chronicle, 18 Oct 2026; ThePrint, 19 Oct 2026 (BPCL tender of 16 Oct 2026) |
| Oct 2026 | **Rs 60.32 per litre** | FCI surplus rice ethanol | ThePrint, 19 Oct 2026 |
| Oct 2026 | **Rs 57.97 per litre** | C-heavy molasses ethanol (ISMA seeks Rs 62.23) | ThePrint, 19 Oct 2026 |
| 2025-26 | **Rs 65.61 per litre** | cane juice ethanol (barred for 2026-27) | sugar tile |

#### Good sources to follow
[RFA market and statistics](https://ethanolrfa.org/markets-and-statistics/annual-ethanol-production)free research site · Renewable Fuels Association

world and US ethanol production, trade and outlook
[BioEnergy Times](https://bioenergytimes.com/)free newsletter · BioEnergy Times

Indian ethanol tenders, prices, sugar and grain feedstock news
[farmdoc daily](https://farmdocdaily.illinois.edu/)free blog · University of Illinois

US ethanol and biodiesel economics, RFS and RIN analysis
[USDA FAS GAIN Biofuels Annual reports](https://www.fas.usda.gov/data/india-biofuels-annual-9)free research site · USDA Foreign Agricultural Service

country biofuel balances, including India

## Other sections

- [Summary](https://www.materialinsights.org/energy/bioethanol/index.md)
- [Energy overview](https://www.materialinsights.org/energy/bioethanol/energy/index.md)
- [Correlation](https://www.materialinsights.org/energy/bioethanol/correlation/index.md)
- [Efficiency](https://www.materialinsights.org/energy/bioethanol/efficiency/index.md)
- [Techniques](https://www.materialinsights.org/energy/bioethanol/techniques/index.md)
- [Resources and labour](https://www.materialinsights.org/energy/bioethanol/resources/index.md)
- [Impact on the biosphere](https://www.materialinsights.org/energy/bioethanol/biosphere/index.md)
- [Overview](https://www.materialinsights.org/energy/bioethanol/overview/index.md)
- [Production route](https://www.materialinsights.org/energy/bioethanol/routes/index.md)
- [Production](https://www.materialinsights.org/energy/bioethanol/production/index.md)
- [Feedstocks](https://www.materialinsights.org/energy/bioethanol/feedstocks/index.md)
- [Cycles](https://www.materialinsights.org/energy/bioethanol/cycles/index.md)
- [Movement](https://www.materialinsights.org/energy/bioethanol/movement/index.md)
- [Regulation](https://www.materialinsights.org/energy/bioethanol/regulation/index.md)
- [Characteristics](https://www.materialinsights.org/energy/bioethanol/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/energy/bioethanol/emissions/index.md)
- [Relationships](https://www.materialinsights.org/energy/bioethanol/links/index.md)