Sugar mills hope for hike in ethanol prices
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) is urging the government to raise ethanol prices paid to sugar mills, which have remained unchanged for two years despite rising sugarcane and input costs. ISMA Director General Deepak Ballani emphasized that sugar mills plan to divert 40-42 lakh tonnes of sugar to ethanol production in the upcoming ethanol supply year. Additionally, ISMA advocates for increasing the minimum sugar selling price from ₹31 to ₹39 per kilogram to cover rising production costs and ensure timely payments to farmers.
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) is pushing for a hike in prices for ethanol supplies by sugar mills to oil marketing companies (OMCs), that have not been raised for two years while sugarcane and input costs had risen along with conversion rates. “We hope the government will announce an increase in ethanol prices soon,” ISMA director general Deepak Ballani told The Hindu. For the ethanol supply year that starts in November, sugar mills expect diversion of about 40 lakh-42 lakh tonnes of sugar to ethanol production.
The fair and remunerative price (FRP) for sugarcane, cost of inputs and the conversion rates have risen, ISMA noted. Further, the minimum selling price of sugar was revised in 2018-2019 to ₹31 a kilogram. The cost of sugarcane has increased. The price should be increased at least to ₹39 a kilogram, the sugar producers’ body said. The Government revised the minimum selling price when the FRP on cane was ₹275 a quintal. The FRP of sugarcane has increased year-on-year basis to ₹340 per quintal for the 2024-2025 sugar season at a basic recovery of 10.25%. Based on data collected from private and cooperative sugar sector in different regions, the Association has estimated the cost of sugar production to be ₹41.66 a kilogram. Around 85% of revenue of sugar sector comes from sales of sugar and, therefore, it is so important for mills to be able to pay the cane price to the farmers, Mr. Ballani said.
Source Link : https://www.thehindu.com/business/sugar-mills-hope-for-hike-in-ethanol-prices/article68788438.ece
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