Union Cabinet approves Rs 1.69 hike in ethanol price

Union Cabinet approves hike in ethanol price

The Union Cabinet on January 29 approved administered ex-mill price of ethanol derived from C Heavy Molasses at Rs 57.97 per litre, under the Ethanol Blended Petrol programme, for the Ethanol Supply Year 2024-25. Earlier, it was Rs 56.58 per litre

"The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25 starting from November 2, 2024 to October 31, 2025 under the Ethanol Blended Petrol (EBP) Programme of the Government of India. Accordingly, the administered ex-mill price of ethanol for the EBP Programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 (November 1, 2024 to October 31, 2025) has been fixed at Rs.57.97 per litre from Rs.56.58 per litre," said government in a statement.

"The approval will not only facilitate the continued policy for the government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment. In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3% will assure sufficient availability of ethanol to meet the increased blending target," the statement added.

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20%.