Hike in ethanol prices to attract more investment in the sugar sector
The government’s latest decision to increase ethanol prices between 4.4% and 6.1% on different varieties for supply from December 2020 has come as a shot in the arm for the sugar industry.
The move is set to encourage the sugar industry to go for fresh investments to increase ethanol production, and that will enable the Oil Marketing Companies (OMCs) to achieve the target of 10% blending with petrol by 2022 and 20% by 2030.
According to Abinash Verma, Director General, Indian Sugar Mills Association (ISMA), “The sugar mills are likely to invest close to Rs 19,000 crore to increase ethanol production capacity to 615 crore litres per annum from the present 425 crore litres per annum capacity.
