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Informist, Thursday, Jan. 16, 2025

 

--Govt source: Cabinet OKs price hike for sugar-based ethanol for 2024-25 

--Govt source: Sugar-based ethanol price likely to be hiked INR 1-INR 2/ltr 

 

By Afra Abubacker and Kuldeep Singh

 

NEW DELHI – The Union Cabinet has approved a hike in prices of ethanol made from sugarcane-based feedstocks for ethanol supply year 2024-25 (Nov-Oct), a senior government official told Informist. Sugar mills manufacture ethanol and their major buyers are oil marketing companies, who use it for blending with petrol to make it a greener fuel.

 

According to sources, price of ethanol sourced from various feedstocks is likely to be increased by INR 1 to INR 2 per litre. Currently, ethanol made from sugarcane juice is priced at INR 65.61 per litre and B-heavy molasses at INR 60.73 per lire, unchanged from 2022-23. In 2023-24, of the sugarcane-based feedstock basket, the government only hiked C-heavy ethanol rates by INR 6.87 to INR 56.28 per litre.

 

Sugar mills have been waiting for the government to announce revised ethanol prices for 2024-25. The procurement price of ethanol is linked to the fair and remunerative price of sugarcane, which the government increased by INR 25 to INR 340 per 100 kg. For sugarcane purchases, mills have to pay farmers prices decided by the government.

 

A revision in price of sugar-based ethanol was on the agenda of the Cabinet meeting on Wednesday, the official said. 

 

Both grain and sugar-based distillery units have been urging the government to revise the ethanol price for 2024-25. "Oil marketing companies fix grain ethanol prices. Grain ethanol price is not in (Cabinet) agenda," the official said.

 

Last year, in the grain-based feedstock, only maize was hiked by INR 5.79 per litre to INR 71.86 per litre. Other grain-based feedstocks are--damaged food grains and rice from Food Corp. of India. 

 

Oil companies purchase ethanol from distilleries to blend the biofuel with petrol and achieve blending targets. To reduce dependence on crude oil, the government has set a target of achieving 20% blending by 2025-26. In 2023-24, India achieved 14.6% blending.  End

 

Edited by Ashish Shirke

 

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