Ethanol prices to rise – Check likely increase
India’s Food Ministry proposed raising ethanol prices by Rs 2-5 per litre, potentially effective from November. Ethanol prices, unchanged since 2023-24, currently stand at Rs 65.61 per litre for cane juice, Rs 60.73 for B-Heavy, and Rs 56.28 for C-Heavy molasses. The move supports the 20% ethanol blending target by 2025-26, benefiting the sugar sector.
Food Ministry has sent a proposal to the Indian government to increase ethanol prices by Rs 2-5 per litre, sources told ET Now. The government may hike the prices of ethanol from November season. The price of ethanol hasn’t been changed since 2023-24 (November-October). As of August 2024, the ethanol price produced from cane juice stands at RS 65.61 per litre, while rates for ethanol from B-Heavy and C-Heavy molasses remain at Rs 60.73 and Rs 56.28 per lire respectively.
The government is also looking to give a push for diversification of feedstocks by aiming to achieve the 20 per cent blending target by 2025-26.
According a PTI report, A joint secretary from the petroleum ministry is leading a committee that has already discussed the proposal once. They also stated that the fair and compensatory price of sugarcane will serve as the foundation for the revision of ethanol prices.
Earlier, Union Minister Amit Shah called for a multi-dimensional approach to biofuel manufacturing and said that India would achieve its 20 per cent ethanol blending target by 2025-26 ahead of the original deadline of 2030.
Ethanol blending in India has reached 13.3 per cent by July, which was up from 12.6 per cent during the 2022-23 season, as per official data. The nation can currently produce 1,589 crore litres of ethanol annually; however, during the 2023–2024 season, oil marketing companies bought 505 crore litres of ethanol to be blended.
The increase of ethanol price will directly benefit the sugar sector.
Hardeep Singh Puri on ethanol blending with diesel
The Indian government is taking a cautionary approach in the blending of ethanol with diesel, which is at an experimental stage, due to formation of deposits in fuel tanks and other effects, as informed by Minister of Petroleum and Natural Gas Hardeep Singh Puri in the Rajya Sabha. There’s no plan as of now to begin blending of ethanol with diesel in a full-fledged manner, Puri replied in a supplementary question.
“The issue of blending ethanol with diesel is still at an experimental stage, and I can say categorically that at present there is no plan to mandate,” Hardeep Singh Puri said in the Rajya Sabha.
Source: https://www.etnownews.com/economy/ethanol-prices-to-rise-check-likely-increase-article-113493333
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