Govt increases procurement price of ethanol produced from all sources

According to the new rules, the price of ethanol derived from C heavy molasses has been increased from Rs 43.46 a litre to Rs 43.75 per litre

The government on Tuesday increased the procurement price of ethanol produced from all sources for the 2019-20 season and also expanded it to include ethanol made from sugarcane syrup and sugar. This was done to further absorb surplus sugar.

The decision, by the Cabinet Committee on Economic Affairs, comes at a time when the Centre is expecting at least 28 per cent increase on savings in crude oil import bill through ethanol blending for the financial year 2019-20 (FY20) at Rs 7,000 crore, compared to Rs 5,456 crore in FY19 and Rs 5,070 crore the previous year. The ethanol procurement season