Cabinet okays higher ethanol procurement price by oil companies for blending – Investing NewsEverything

New Delhi, Nov 2 (IANS) The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a rise in the cost of ethanol procured by oil marketing companies (OMCs) from distilleries.

This has been done for the forthcoming sugar season 2022-23 during ethanol supply year 2022-23 from December 1, 2022 to October 31, 2023.

The CCEA decided to raise the price of ethanol from C heavy molasses from Rs 46.66 per litre to Rs 49.41 per litre.

Similarly, the price of ethanol from B heavy molasses has been hiked from Rs 59.08 per litre to Rs 60.73 per litre.

Also, the price of ethanol from sugarcane juice, sugar and sugar syrup has been increased from Rs 63.45 per litre to Rs 65.61 per litre.

Additionally, GST and transportation charges will also be payable, official sources said.

“All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for Centre’s ethanol blending programme (EBP). Remunerative price to ethanol suppliers will help in early payment to cane farmers, in the process contributing to minimise difficulty of sugarcane farmers,” an official statement said.

The government has been implementing EBP, where 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.

–IANS

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