Indian sugar industry seeks increase in ethanol price in line with FRP hike
The sugar industry is urging the government to revise ethanol prices, which have remained unchanged for two years, despite a nearly 11.5% rise in sugarcane’s fair and remunerative price (FRP). With FRP increasing from ₹305 to ₹340 per quintal since 2022-23, distilleries face pressure as ethanol prices for various molasses types remain stagnant, affecting profitability.
The sugar industry is looking forward to the government revising upwards the price of ethanol in line with the increase in the sugarcane fair and remunerative price (FRP), announced recently. Ethanol prices have not been revised for the past two years, said Deepak Ballani, Director-General, Indian Sugar and Bio Energy Manufacturers Association (ISMA).
“In the last two years, there was a revision of almost 11.5 per cent in the sugarcane FRP. Although my feedstock prices have gone up because it is regulated by the government, the ethanol rate, which is also regulated by the government, has not been revised. And that has really impacted our distilleries quite a bit,” Ballani said.
During 2022-23, the FRP for sugarcane was fixed ₹305 per quintal, while the price for ethanol produced from sugarcane juice was fixed ₹65.61 per litre. For ethanol produced from B-heavy molasses, the price was fixed at ₹60.73 per litre, and for C-heavy molasses, it was ₹49.41 per litre during the year. The FRP was increased to ₹315 per quintal during 2023-24 and then to ₹340 per quintal for during the ongoing 2024-25 sugar season.
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Source : The Hindu Business line
