The Cabinet on Wednesday approved a hike in rates of ethanol derived from different sugarcane based raw materials under the Ethanol Blending Programme (EBP) for Ethanol Supply Year 2022-23.
(i) The price of ethanol from C heavy molasses was increased from Rs.46.66 per litre to Rs.49.41 per litre,
(ii) The price of ethanol from B heavy molasses route was increased from Rs.59.08 per litre to Rs.60.73 per litre,
(iii) The price of ethanol from sugarcane juice/sugar/sugar syrup route was increased from Rs.63.45 per litre to Rs.65.61 per litre,
(iv) Additionally, GST and transportation charges will also be payable.
Commenting on the development Mr. Sonjoy Mohanty, DG – Indian Sugar Mills Association (ISMA) said, “Industry welcomes the revision of ethanol price for the next supply season of 2022-23 which will commence from 1st December 2022. The revised prices announced for ethanol manufactured from C-Heavy molasses and B-Heavy molasses will encourage sugar mills to divert more sugar towards ethanol production. However, the revision of price of ethanol manufactured from Sugarcane juice/sugar syrup is not enough to drive additional investments in new capacity building.
The industry has represented many times to the Government that the price of ethanol produced from sugar juice/syrup should be based on Return on Equity with a payback period of 5 years. The derived price based upon ROE works to Rs 69.85 / litre. The price of Rs.65.61/ litre announced by the Government today would still make the investors shy away from the much needed infusion into the sector for ethanol capacities. We would request the Government to have a re-look and increase the price of ethanol procured from sugar juice/syrup.”
“ESY 2022-23 is a crucial year, as the country is expected to achieve 12% ethanol blending. The total requirement is 651 crore litres to ethanol. Sugar mills are expected to divert about 45 lakh tons of sugar towards ethanol production. A higher fixed price of ethanol derived from sugarcane juice/sugar syrup would have given the industry much needed push to meet target set by the Hon’ble PM.” Mohanty further added.
