In a major relief for sugarcane-based ethanol makers, the Oil Marketing Companies (OMCs) have announced a Rs 6.87 per litre increase in the procurement price for ethanol produced from C Heavy Molasses (CHM) for the 2023-24 season that started in November. Now, the price of Ethanol from C Heavy Molasses will shift from Rs 49.41 to Rs 56.28 per litre.
Indian Sugar & Bio-energy Manufacturers Association (ISMA) appreciated the decision to increase prices of ethanol produced from C Heavy Molasses.
In a released statement, M Prabhakar Rao – President, Indian Sugar & Bio-energy Manufacturers Association (ISMA) said, “The industry appreciates the incentive of Rs. 6.87/ litre on supply of ethanol from C Heavy Molasses that takes the price to 56.28/ litre. However, I also believe that it should be further increased to help the industry navigate better in these uncertain times and ensure timely cane price payments, mitigation of losses and help augment ethanol production. Not to mention, the high interests that the industry is paying for investments in the increase of ethanol production capacity that is now not being utilised fully.”
He also reiterated industry’s appeal to ban export of molasses with immediate effect and the fact that we await further increase in price of ethanol from B Heavy Molasses and Sugar Cane Juice.
The Government of India has been implementing Ethanol Blended with Petrol (EBP) Programme throughout the country wherein OMCs sell petrol blended with ethanol. Under EBP Programme, Government has fixed the target of 20% blending of ethanol with petrol by 2025.
In order to achieve the target of 20% blending by 2025, about 1016 crore litres of ethanol is required and total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol producing capacity is required to be in place by 2025 considering plant operates at 80% efficiency.
