New Delhi: The Union Cabinet on Thursday announced the hike in ethanol prices for supply to oil marketing companies. Sugar industry apex body, Indian Sugar Mills Association (ISMA), has welcomed the government’s decision.
The government has raised the price of ethanol extracted from sugarcane juice to Rs 62.65 per litre from the current Rs 59.48 per litre. The rate for ethanol from C-heavy molasses has been increased from Rs 43.75 per litre to Rs 45.69 per litre and that of ethanol from B-heavy molasses to Rs 57.61 per litre from Rs 54.27 per litre.
Applauding the government’s decision to hike ethanol prices, ISMA DG Abinash Verma said, “The sugar industry welcomes another excellent decision of the Government to encourage ethanol production and supplies. The attractive increase in ethanol procurement prices by upto Rs.3.34 per litre of ethanol to be supplied from 1st Dec 2020 is the best ever. This decision puts to rest all doubts about ethanol prices getting reviewed due to the fall in crude oil prices and confirms the Government’s commitment to continue linking ethanol prices to sugar and sugarcane prices only, and not to crude oil price in any way. This should attract more supplies of ethanol in 2020-21 and will not only help in reducing some surplus sugar production of around 20 lakh tons, but will also ensure that we are able to achieve Government’s target of 10% ethanol blending by 2022. This will increase the confidence of sugar industry and distilleries in the Government and will attract them to invest in more ethanol production capacity, which is so important for all of us to reduce surplus sugar, increase ethanol production & supplies and help make timely payment of cane price to farmers”.
The Indian government aims to boost ethanol production, therefore it is taking various steps for the same. To strengthen the financial condition of sugar mills and cut oil imports, the government asked mills to focus on ethanol production.
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