Set by the government, ethanol prices have not been raised since the 2022-23 ethanol supply year (November-October). Current rates of ethanol produced from cane juice, B-Heavy molasses, and C-Heavy molasses are INR 65.61, INR 60.73 and INR 56.28 per litre, respectively.The Union Cabinet has approved the proposal to hike ethanol prices, ET Now reported citing sources Wednesday. Details of the proposal are yet to be known.
Set by the government, ethanol prices have not been raised since the 2022-23 ethanol supply year (November-October). Current rates of ethanol produced from cane juice, B-Heavy molasses, and C-Heavy molasses are INR 65.61, INR 60.73 and INR 56.28 per litre, respectively.
Shares of sugar and ethanol-linked company stocks rallied, with EID-Parry, Shree Renuka Sugars, Balrampur Chini Mills and Triveni Engineering gaining 3.7%, 4.5%, 2.5% and 2.3% as of 1:10 pm on BSE Sensex, which was up 0.62%.
In the 2024-25 ethanol supply cycle, oil marketing companies have allocated only 837 crore litres of ethanol from the sugar industry, despite an offer of 970 crore litres. This has resulted in 79 crore litres remaining unallocated, raising concerns from the Indian Sugar and Bio-energy Manufacturers’ Association (ISMA) about potential under-utilisation of capacity and subsequent financial losses for the industry.
Currently, India blends ethanol into 13% of its petrol supply, which amounted to approximately 550 crore litres used for fuel by August. The government aims to increase this ethanol blending target to 20% by 2025.
