Prices will be increased from the new session starting from November. This will provide cash to the sugar mills. This will be used to pay the dues of farmers.
New Delhi. The government is considering a proposal to increase ethanol prices for the session starting November 2024. It is also emphasizing on diversification of raw materials as it aims to achieve the target of blending 20 per cent ethanol in petrol by 2025-26. A committee headed by the Joint Secretary of the Petroleum Ministry has already held a round of discussion on the proposal.
Sources said that the revision of ethanol prices will be done on the basis of fair and remunerative price of sugarcane. Sources say that price revision is being considered on priority basis to encourage production and meet our blending targets. Farmers and sugar mills will benefit from the increase in the price of ethanol. This will give more money to the mills which will help in paying the dues of the farmers.
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Prices will not change now
Last week, Cooperation Minister Amit Shah called for a multi-pronged approach to biofuel production, saying India would achieve the 20 per cent ethanol blending target by 2025-26, well before the original deadline of 2030. The ethanol prices fixed by the government have remained unchanged since the 2022-23 session (November-October).
how much is the price now
Currently, the price of ethanol produced from sugarcane juice is Rs 65.61 per liter, while the rates for ethanol produced from ‘B-heavy’ and ‘C-heavy’ molasses are Rs 60.73 and Rs 56.28 per liter respectively. Sources said the government considers the ethanol blending program important to meet its green energy commitments and improve the financial condition of sugar mills.
How far has the target reached
According to official data, ethanol blending in India has reached 13.3 per cent till July in the current season, up from 12.6 per cent in the 2022-23 season. The country’s total ethanol production capacity is currently 1,589 crore liters. Petroleum marketing companies have purchased 505 crore liters of ethanol for blending during the 2023-24 season.
Tags: Business news, Petrol New Rate, sugar mill, Sugarcane Farmer
FIRST PUBLISHED : August 13, 2024, 15:46 IST