New Delhi: The government’s decision of blending ethanol with petrol may help the sugar mills to earn Rs 15,000 crore in the current season. In a written reply to the Lok Sabha, Union Minister of State for Food and Consumer Affairs Sadhvi Niranjan Jyoti stated that the mills are likely to earn Rs 15,000 crore by selling ethanol to the oil marketing companies during this market year (December-November).
The revenue mills will get by selling ethanol this season is high as compared to previous years. The minister in her reply has stated that during the last three seasons, 2017-18, and 2018-19 and 2019-20 the mills earned Rs 22,000 crore by selling ethanol to the OMCs.
The mills are suffering loss as the ex-mill prices of sugar are low due to excess sugar stock of 60-70 lakh tonnes, noted the minister stating that this has resulted in increasing cane arrears.
“Government is encouraging sugar mills to increase ethanol production by diverting excess sugarcane which will help them in earning more profit as well as help India in lowering expenditure on foreign exchange,” she said.
The central government with an aim to lower the expenditure on foreign exchange has set a target of blending 20 per cent ethanol with petrol by 2025. One after another new investment is coming into the ethanol sector in the country. In the recent past, many companies had announced capital expenditure for ethanol production.
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