Ethanol blending in India reached 13.3 percent in July of the current season, up from 12.6 percent during the 2022-23 season: official data | Photo: Shutterstock
The government is considering a proposal to increase ethanol prices for the season beginning November 2024, while boosting feedstock diversification as it aims to achieve the 20 per cent blending target by 2025-26, sources said.
A committee headed by a joint secretary of the oil ministry has already held a round of discussions on the proposal. The revision of ethanol prices will be based on the fair and remunerative price of sugarcane, they added.
“Price revision is being considered as a priority to encourage production and meet our blending targets,” said a source who requested anonymity.
Last week, Cooperation Minister Amit Shah called for a multi-dimensional approach to biofuel manufacturing and said India would achieve its 20 per cent ethanol blending target by 2025-26, ahead of the original deadline of 2030.
Ethanol prices, fixed by the government, have remained unchanged since the 2022-23 season (November-October). Currently, ethanol produced from sugarcane juice is priced at Rs 65.61 per litre, while the rates for ethanol made from B-Heavy and C-Heavy molasses stood at Rs 60.73 and Rs 56.28 per litre, respectively.
The government sees the ethanol blending program as key to meeting its green energy commitments and improving the financial health of sugar mills, the sources added.
According to official data, ethanol blending in India reached 13.3 percent in July of the current season, up from 12.6 percent during the 2022-23 season.
The country’s total ethanol production capacity currently stands at 1.589 billion liters, with oil marketing companies purchasing 505 million liters of ethanol for blending purposes during the 2023-24 season.
Sources said the committee is specifically looking into revising the prices of ethanol produced from sugarcane.
The sugar industry has demanded an increase in the price of ethanol, an increase in the minimum selling price of sugar and permission for sugar exports.
However, the government is prioritising ethanol production and blending targets.
The oil and sugar ministries did not respond to queries about the possible price revision.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 13, 2024 | 1:49 PM IS
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