Cabinet may approve price hike for sugar-based ethanol for 2024-25
This story was originally published at 11:02 IST on 29 January 2025
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--Govt source: Cabinet may OK price hike for sugar-based ethanol for 2024-25
--Govt source: Sugar-based ethanol price may be hiked by INR 1-INR 2/ltr
NEW DELHI – The Union Cabinet is likely to approve a hike in prices of ethanol made from sugarcane-based feedstocks for ethanol supply year 2024-25 (Nov-Oct), according to a government official. Sugar mills manufacture ethanol and their major buyers are oil marketing companies which use it for blending with petrol to make it a greener fuel. A revision in the price of sugar-based ethanol was on the agenda of the Cabinet meeting on Wednesday, the official said.
According to sources, the price of ethanol sourced from various feedstocks is likely to be increased by INR 1-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 litre, unchanged from 2022-23. Of the sugarcane-based feedstock basket, the government in 2023-24 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.
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
Reported by Kuldeep Singh and Afra Abubacker
Edited by Namrata Rao
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