CCEA Raises Sugarcane-Extracted Ethanol Prices By Rs 2.15 To Rs 65.6/L; Procurement Mechanism Approved

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved a mechanism for the procurement of ethanol by state-owned oil marketing companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme. The CCEA also raised the price of ethanol extracted from sugarcane for blending in petrol by Rs 2.15 to Rs 65.6 per litre from last year’s Rs 63.45 per litre. The revision of ethanol price is for the ethanol supply year (ESY) 2022-23.

The price of ethanol from C heavy molasses also has increased from Rs 46.6 per litre to Rs 49.4 per litre. The price for ethanol from B heavy molasses has also risen from Rs 59.08 per litre to Rs 60.73 per litre.

“The (CCEA) has approved higher ethanol price derived from different sugarcane-based raw materials under the EBP Programme for the forthcoming sugar season 2022-23 during ESY 2022-23 from December 1, 2022, to October 31, 2023 — (i) The price of ethanol from C heavy molasses route be increased from Rs 46.66 per litre to Rs 49.41 per litre; (ii) The price of ethanol from B heavy molasses route be increased from Rs 59.08 per litre to Rs 60.73 per litre; (iii) The price of ethanol from sugarcane juice/sugar/sugar syrup route be increased from Rs 63.45 per litre to Rs 65.61 per litre; (iv) Additionally, GST and transportation charges will also be payable,” according to an official statement.

The government has been implementing Ethanol Blended Petrol Programme wherein OMCs sell petrol blended with ethanol up to 10 per cent. This programme has been extended to 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 boost to agriculture sector.

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