On January 29, the Union Cabinet approved the ex-mill price of ethanol produced from C Heavy Molasses at Rs 57.97 per litre, as part of the Ethanol Blended Petrol initiative, for the Ethanol Supply Year 2024-25. Previously, it was Rs 56.58 for each litre.
“The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25 starting from November 2, 2024 to October 31, 2025 under the Ethanol Blended Petrol (EBP) Programme of the Government of India. Accordingly, the administered ex-mill price of ethanol for the EBP Programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 (November 1, 2024 to October 31, 2025) has been fixed at Rs.57.97 per litre from Rs.56.58 per litre,” said government in a statement.
Union Minister Ashwini Vaishnaw emphasized the major advantages of the ethanol blending initiative, which is nearly at 20% (E20). At present, India mixes ethanol into 13% of its petrol supply, totaling around 550 crore litres utilized for fuel by August 2024.
He called it a “win-win-win” program, highlighting its beneficial effects on farmers, savings in foreign exchange, and the environment. He mentioned that farmers have gained from value addition to their crops, with Rs 40,000 crore paid out in the previous ethanol supply year (ESY).
The Indian Sugar Mills Association (ISMA) had expressed worries regarding a looming crisis in the sugar sector, cautioning that several mills might face financial difficulties if ethanol prices are not adjusted quickly.
The importance of ethanol has increased in recent months due to the ongoing drop in sugar prices. ISMA President M Prabhakar Rao informed CNBC-TV18 that immediate government action is necessary to maintain stability in the industry and back the wider ethanol-blending efforts.
