Hike in ethanol prices to help sugar mills to clear cane dues
The Cabinet Committee on Economic Affairs (CCEA) on Thursday approved hikes of Rs 1.94-3.17/litre in the reserve prices of different categories of ethanol to be purchased by oil marketing companies (OMCs) under the ethanol blending programme during the 2020-21 season to help sugar mills earn more and clear the cane dues of farmers. Declining realisation from sugar sales over the last few years have forced the sugar factories to diversify into the green fuel.
Ethanol made from sugarcane juice/sugar/sugar syrup route has been increased to Rs 62.65/litre from Rs 59.48, information and broadcasting minister Prakash Javadekar said after the CCEA meeting. While the increase is higher at Rs 3.34/litre for ethanol made from ‘B heavy molasses’, there is a moderate rise of Rs 1.94/ litre in ethanol from ‘C heavy molasses’.
