ISMA urges govt to hike ethanol price from sugarcane juice, B-Heavy molasses
This story was originally published at 15:42 IST on 30 January 2025
Register to read our real-time news.Informist, Thursday, Jan. 30, 2025
MUMBAI – The Indian Sugar Mills and Bio-energy Manufacturers Association has urged the central government to revise ethanol prices derived from sugarcane juice and B-Heavy molasses to support viability of the sector and ensure timely sugarcane payments to farmers. Ethanol prices made from sugarcane juice and B-Heavy molasses were last revised in the ethanol supply year 2022-23 (Nov-Oct), ISMA said.
The Union Cabinet Wednesday approved an increase in the procurement price of ethanol made from C-Heavy molasses to INR 57.97 per litre for the ethanol supply year 2024-25, while keeping rates unchanged for other sugarcane-based feedstocks. Hence, the sugar industry is disappointed about the lack of price hike for ethanol derived from sugarcane juice and B-heavy molasses, the association said.
According to ISMA, the fair and remunerative price of sugarcane has been increased twice during the ongoing sugar season of 2024-25 (Oct-Sep) by a total of INR 350 per tonne to INR 3,400 per tonne. This translates into an increase of 11.5% in the fair and remunerative price for sugarcane. ISMA believes this hike should be reflected in ethanol procurement prices. Consequently, the cost of production of ethanol has increased considerably, it added.
The sugar sector has invested around INR 400 billion in building capacities, which has doubled in the last five years, ISMA said. The current capacity stands around 8.50 billion litres and the industry is capable of increasing its capacity to achieve the blending targets set by the government.
A formula-based approach linked with the fair and remunerative price of sugarcane should be followed to determine the price of ethanol, taking into consideration the increase in input costs as per past practice, ISMA said.
In order to encourage the sugar industry's contributions and investments to achieve E20, which is a fuel with a blend of 80% petrol and 20% ethanol, ISMA has urged the government to reconsider a suitable price increase for ethanol derived from sugarcane-based feedstocks. End
Reported by Taniva Singha Roy
Edited by Nishant Maher
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
