Govt raises procurement price of C-heavy molasses ethanol by Rs 1.69/litre

The Union Cabinet on Wednesday approved a three per cent increase in the procurement price for ethanol made from C-heavy molasses to Rs 57.97 per litre for the 2024-25 supply year, while keeping rates unchanged for other feedstock.

The ethanol supply year runs from November to October.

  Till a few years back, C-heavy molasses was the choicest route for making ethanol by sugar companies but off late, bulk of the ethanol from sugarcane is being produced from B-heavy molasses and direct from sugarcane juice. C-heavy molasses contains very little sugar content compared to other sugarcane feedstock.

  Prices for ethanol produced from B-heavy molasses and sugarcane juice/ sugar/ sugar syrup remain unchanged at Rs 60.73 and Rs 65.61 per litre, respectively.

  As in previous years, GST and transportation charges will be paid separately to support sugarcane farmers.

  The Indian Sugar and Bio Energy Manufacturers Association (Isma) expressed disappointment over no price hike in ethanol from cane juice and b-heavy molasses and urged the government to reconsider suitable price increases to support sector viability and ensure timely cane payments to farmers.

  Ethanol blending by public sector OMCs has risen from 38 crore litres in 2013-14 to 707 crore litres in 2023-24, achieving average blending of 14.60 per cent.

  The EBP programme has generated foreign exchange savings of over Rs 1,13,007 crore and substituted about 193 lakh tonnes of crude oil in the decade until December 1, 2024, the statement added.