Because of the growing trend of bioethanol production and its utilization as an alternative biofuel, mostly for transportation sector, the economy of this production should be analyzed and improved in order to decrease the production costs and make this biofuel competitive with fossil fuels. In this view, the choice of suitable and abundant raw material is of great importance since the feedstock cost represents a major part of the production cost. Our analysis has compared the cost of bioethanol produced from three crops that can be cultivated in Serbia: corn, wheat and triticale, and the triticale has been shown as the most favorable. Utilization of waste crops or by-products from other industries such as starch processing, could also be a very rational approach. The efforts and investments in promoting the second generation of bioethanol on lignocellulosic biomass in Serbia should be intensified, especially due to the fact that this biomass is vastly available in the country and it doesn’t compete with food production. In addition, a proper utilization of by-products from bioethanol production for the production of animal feed and lactic acid can significantly improve the economy of bioethanol production.