Union Cabinet nod to hike ethanol price for petro

A higher blending of ethanol in petrol will help cut India its oil import bill and also benefit sugar cane farmers as well as sugar mills. The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Modi, gave its approval for fixing a higher price for ethanol derived from sugarcane-based raw materials under Ethanol Blended Petrol (EBP) Programme for Ethanol Supply Year (ESY) 2021-22 starting next month.

Giving details, Information and Broadcasting Minister Anurag Thakur said the price of ethanol extracted from sugarcane juice has been increased to Rs 63.45 per litre from the current Rs 62.65 per litre for the supply year beginning December 2021. The rate for ethanol from C-heavy molasses is increased to Rs 46.66 per litre from Rs 45.69 per litre currently and that of ethanol from B-heavy to Rs 59.08 per litre from Rs 57.61 per litre.

Oil marketing companies Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL), which procure ethanol from sugar mills and distilleries, will also bear the GST and transportation costs on the ethanol procured for doping in petrol. Thakur said ethanol blending with petrol has touched 8 per cent in the 2020-21 marketing year (December-November) and is expected to reach 10 per cent next year. India has plans to increase blending to 20 per cent by 2025.

The CCEA approval will not only facilitate continued policy in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing arrears of cane farmers and dependency on crude imports, an official release said.