Govt hikes ethanol price from C-heavy molasses, boost to sugar mills and distilleries

The administered ex-mill price of ethanol derived from C-heavy molasses has been fixed at ₹57.97 per litre up from ₹56.58 per litre, under the Ethanol Blended Petrol Programme for the Ethanol Supply Year 2024-25.

Govt hikes ethanol price from C-heavy molasses, boost to sugar mills and distilleries

The Union Cabinet on Wednesday approved a revision in ethanol procurement prices for the Ethanol Supply Year 2024-25 (Nov-Oct), under the Ethanol Blended Petrol (EBP) Programme. The revised procurement prices are expected to incentivize sugar mills and distilleries to expand ethanol output, aligning with the country’s biofuel policy goals.

Announcing the decision taken by the Cabinet Committee on Economic Affairs, I&B Minister Ashwini Vaishnaw stated that the administered ex-mill price of ethanol derived from C-Heavy Molasses has been fixed at Rs.57.97 per litre from Rs.56.58 per litre, under the EBP Programme for the Ethanol Supply Year 2024-25. However, prices for ethanol produced from B-heavy molasses and sugarcane juice/sugar/sugar syrup remain unchanged at ₹60.73 per litre and ₹65.61 per litre, respectively.

“In the interest of sugarcane farmers, as in the past, GST and transportation charges will be paid separately. The 3% increase in the price of C-heavy molasses ethanol will ensure sufficient availability to meet the increased blending target,” stated a government press release.

The move is part of India's broader strategy to enhance ethanol blending in petrol. The government has advanced its target for 20% ethanol blending from 2030 to the ethanol year 2025-26. To accelerate progress, Oil Marketing Companies (OMCs) are targeting an 18% ethanol blend during the ongoing ESY 2024-25.

India, the world’s third-largest oil importer and consumer, has been actively promoting ethanol production to reduce its dependence on overseas crude oil. 

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