Centre approves rise in price of ethanol procured by OMCs

The centre has approved a rise in the price of ethanol procured by oil marketing companies (OMCs) from distilleries.

This has been done for the forthcoming sugar season 2022-23 during ethanol supply year 2022-23 from December 1, 2022 to October 31, 2023.

The Cabinet Committee Economic Affairs decided to raise the price of ethanol from C heavy molasses from Rs. 46.66 per litre to Rs. 49.41 per litre.

Similarly, the price of ethanol from B heavy molasses has been hiked from Rs. 59.08 per litre to Rs. 60.73 per litre.

Also, the price of ethanol from sugarcane juice, sugar and sugar syrup has been increased from Rs. 63.45 per litre to Rs. 65.61 per litre.

Additionally, GST and transportation charges will also be payable, official sources said.

"All distilleries will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for Centre's ethanol blending programme (EBP). Remunerative prices to ethanol suppliers will help in early payment to cane farmers, in the process contributing to minimise difficulty of sugarcane farmers," an official statement said.

The government has been implementing EBP, where Oil Marketing Companies sell petrol blended with ethanol up to 10 per cent.

This programme has been extended to the whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from April 1, 2019 to promote the use of alternative and environment friendly fuels.

This intervention also seeks to reduce import dependence for energy requirements and give a boost to the agriculture sector.

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