The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, on Wednesday approved a mechanism for the procurement of ethanol by state-owned oil marketing companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme. The CCEA also raised the price of ethanol extracted from sugarcane for blending in petrol by Rs 2.15 to Rs 65.6 per litre from last year’s Rs 63.45 per litre. The revision of ethanol price is for the ethanol supply year (ESY) 2022-23.
“The (CCEA) has approved higher ethanol price derived from different sugarcane-based raw materials under the EBP Programme for the forthcoming sugar season 2022-23 during ESY 2022-23 from December 1, 2022, to October 31, 2023,” according to an official statement.
The price of ethanol from C heavy molasses also has increased from Rs 46.6 per litre to Rs 49.4 per litre. The price for ethanol from B heavy molasses has also risen from Rs 59.08 per litre to Rs 60.73 per litre.
According to the statement on CCEA approvals, “The price of ethanol from C heavy molasses route be increased from Rs 46.66 per litre to Rs 49.41 per litre; the price of ethanol from B heavy molasses route be increased from Rs 59.08 per litre to Rs 60.73 per litre; the price of ethanol from sugarcane juice/sugar/sugar syrup route be increased from Rs 63.45 per litre to Rs 65.61 per litre; additionally, GST and transportation charges will also be payable.”
The government has been implementing Ethanol Blended Petrol Programme wherein 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.
“All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. Remunerative price to ethanol suppliers will help in early payment to cane farmers, in the process contributing to minimize difficulty of sugarcane farmers,” the statement said.
It also said the government has notified administered price of ethanol since 2014. For the first time during 2018, differential price of ethanol based on feed stock utilized for ethanol production was announced by the government. These decisions have significantly improved the supply of ethanol, consequently ethanol procurement by public sector OMCs has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY – currently defined as ethanol supply period from 1st December of a year to 30th November of the following year) to contracts of over 452 crore litre in ongoing ESY 2021-22. The target of achieving average 10 per cent blending has been achieved in June, 2022, much ahead of the target date of November 2022.
The government has advanced the target of 20 per cent ethanol blending in petrol from earlier 2030 to ESY 2025-26 and a ‘Roadmap for ethanol blending in India 2020-25′ has been put in public domain.
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