According to sources in the ministry, the ethanol prices are unlikely to be linked to crude prices as some earlier reports had suggested.
The ministry has recommended and cleared fixed price for ethanol. The new prices would be notified soon.
Sources, says new fixed price for ethanol has been recommended and cleared. The new ethanol season will start from December 1.
The new prices are expected to be higher from the levels fixed in December 2014.
The last time ethanol prices were fixed, it was in December 2014, when the distillery gate prices were fixed at Rs 41 per litre and the minimum delivered price between Rs 48.50 and 49.50 a litre, depending upon the proximity of distillery to the depot of oil marketing companies.
The market would be keenly watching for news on excise duty. The government in August withdrew the excise duty exemption granted to sugar mill on ethanol production.
In June 2015, sugar mills were exempted from excise duty of 12.36 per cent on ethanol produced in the 2015-16 season (October- September) and supplied to oil companies.
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