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Ethanol Price Up By Rs. 2.85 Per Litre

NEWS WORLD INDIA | 0
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| June 27 , 2018 , 17:51 IST

The Cabinet Committee on Economic Affairs has approved the mechanism for procurement of ethanol by Public sector Oil Marketing Companies (OMCs) to carry out the Ethanol Blended Petrol (EBP) Programme.

 

In a media briefing, Union Finance Minister, Piyush Goyal, said, “the move will have a positive impact on the capability of the sugar industry to pay farmers dues and the blending of 10 per cent ethanol with petroleum products.”

To facilitate this, CCEA has fixed the ex-mill price of ethanol derived from C heavy molasses to Rs. 43.70 per litre from Rs. 40.85 per litre. The government has also fixed the price of ethanol derived from B-molasses and sugarcane at Rs. 47.49 per litre.

Realization from ethanol is a key component for revenue generation for sugar mills, hence the government has decided to review the price of ethanol derived out of C heavy molasses as well.

Also Read: India Must Go For Pollution-Free Methanol As Fuel: Gadkari

The Centre is also deciding the price of B heavy molasses and sugarcane juice for the first time which is likely to positively impact the capability of sugar Industry to pay farmers dues and increase the availability of ethanol for EBP programme.

The price of ethanol is based on estimated FRP for sugar season 2018-19, it will be modified by Mop & NG as per actual fair and remunerative price (FRP) declared by the government.

For ethanol supply year 2019-20, ethanol prices will be modified by Mop & NG as per normative cost of molasses and sugar derived from FRP of sugarcane.