Business Standard

Govt hikes ethanol procurement price by Rs 1.95, nudges mills to blending

For the 2019-20 sugar season, government had fixed a target of producing 2.60 billion litres of ethanol.


For ethanol produced from C-heavy molasses, the new price will be Rs 46.69 per litre, up from Rs 43.75 per litre in the current season and a jump of around 4.43 per cent.

Sanjeeb MukherjeeAmritha Pillay New Delhi and Mumbai
The government on Thursday increased the procurement price of three categories of ethanol by Rs 1.95 to Rs 3.34 per litre, nudging mills to divert sugarcane for producing ethanol rather than sugar. The price change is for the 2020-21 season starting December 1.

Ethanol is produced from C-heavy molasses, B-heavy molasses and sugarcane juice or syrup or direct sugar. It is also made from broken, unused grains. The price hike is for ethanol derived only from sugarcane. The decision to increase the purchase price was taken at a meeting of the Cabinet Committee on Economic Affairs.

For ethanol produced from C-heavy molasses,

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First Published: Oct 29 2020 | 10:44 PM IST

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