The Union Cabinet recently approved an increase in the procurement price for ethanol made from C-heavy molasses to Rs 57.97 per litre for the 2024-25 Ethanol Supply Year (ESY), while keeping rates unchanged for other sugarcane-based feedstocks. However, the sugar industry is disappointed over the lack of a price hike for ethanol from cane juice and B-Heavy Molasses.
Tarun Sawhney, Vice Chairman & Managing Director of Triveni Engineering and Industries Ltd (TEIL) said, “The recent adjustment in ethanol prices, with a marginal increase for C-Heavy Molasses (CHM) to Rs 57.97 per litre, is a step forward. However, the industry had hoped for a revision in prices for ethanol produced from B-Heavy Molasses and sugarcane juice-based ethanol on priority to reduce the financial stress across the value chain.”
He said, “The Government’s proactive approach to advancing India’s ethanol blending ambitions—including the formation of a NITI Aayog committee to explore blending beyond the existing 20% target by 2025-26, signals a strong policy commitment to scaling sustainable energy solutions. To achieve any long-term targets, it is crucial for the industry to invest in expanding its capacity. A sustainable pricing model for ethanol will play an essential role.”
“With sugarcane Fair and Remunerative Price (FRP) rose to Rs 3,400 per tonne for the Sugar Season 2024-25, aligning ethanol pricing with input costs will help ensure timely farmer payments and the continued viability of distilleries. To truly support the ethanol sector and meet India’s ambitious blending targets, a more comprehensive, long-term pricing policy is essential. This should include clear linkages between ethanol prices and the FRP of sugarcane, ensuring fairness, predictability, and stability across the value chain,” TEIL VC and MD further added.
Recently, with no price revision for the last two years, Indian Sugar and Bio-Energy Manufacturers Association (ISMA) had urged for a comprehensive revision in ethanol prices from sugarcane juice and B-Heavy Molasses to support sector viability and ensure timely cane payments to farmers.
