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New Delhi : The Cabinet Committee on Economic Affairs chaired by PM Narendra Modi has given its approval for fixing higher ethanol price derived from different raw materials under the Ethanol Blended Petrol (EBP) Programme for the forthcoming sugar season 2019-20 during ethanol supply year from 1st December 1, 2019 to November 30, 2020.

The price of ethanol from C heavy molasses route will be increased from Rs 43.46 per lit to Rs 43.75 per litre, the price of ethanol from B heavy molasses route will be increased from Rs 52.43 per lit to Rs.54.27 per litre, the price of ethanol from sugarcane juice/sugar/sugar syrup route will be fixed at Rs 59.48 per litre.

Additionally, GST and transportation charges will also be payable. Oil Marketing Companies (OMCs) have been advised to fix realistic transportation charges so that long distance transportation of ethanol is not disincentivised, The OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup  2. B heavy molasses 3. C heavy molasses, and 4. Damaged Food grains/other sources, in that order.

All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in reduction of cane farmer’s arrears, in the process contributing to minimising difficulty of sugarcane farmers, according to a PIB release.

The Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%. 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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