Cabinet approves revision of ethanol price for supply to public sector oil marketing companies
Oct 29, 2020
New Delhi [India], October 29 : The CCEA on Thursday approved mechanism for procurement of ethanol by public sector Oil Marketing Companies (OMCs) under Ethanol Blended Petrol Programme and revised ethanol price for supply to them for 2020-21.
The Cabinet Committee on Economic Affairs (CCEA) approved fixing higher ethanol price derived from different sugarcane-based raw materials under the Ethanol Blended Petrol (EBP) programme for the forthcoming sugar season 2020-21 during Ethanol Supply Year (ESY) 2020-21 from December 1, 2020, to November 30, 2021.
Briefing reporters about cabinet decisions, Information and Broadcasting Minister Prakash Javadekar said CCEA approved an increase in the price of ethanol from C heavy molasses route from Rs 43.75 to R.45.69 per litre and price of ethanol from B heavy molasses route from Rs 54.27 to Rs 57.61 per litre.
The price of ethanol from sugarcane juice/sugar/ sugar syrup route has been increased from Rs 59.48 to Rs.62.65 per litre.
Additionally, GST and transportation charges will also be payable. OMCs have been advised to fix realistic transportation charges so that long-distance transportation of ethanol is not disincentivised.
An official release said that in order to offer fair opportunity to the localized industry within the state and reduce crisscross movement of ethanol, OMCs shall decide the criteria for the priority of ethanol from various sources taking into account various factors like cost of transportation and availability.
It said remunerative price to ethanol suppliers will help in the reduction of cane farmers' arrears and contribute to minimizing the difficulty of sugarcane farmers.
Government has been implementing EBP Programme in which OMCs sell petrol blended with ethanol up to 10 per cent. This programme has been extended to the entire country except for 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 a boost to the agriculture sector.
The government has notified the administered price of ethanol since 2014.
"For the first time during 2018, the differential price of ethanol-based on raw material utilized for ethanol production was announced by the government. These decisions have significantly improved the supply of ethanol."
Its procurement by public sector OMCs has increased from 38 crore litres in Ethanol Supply Year (ESY) 2013-14 to over 195 crore litre in ESY 2019-20.
The release said that consistent surplus of sugar production is depressing sugar price and sugarcane farmer's dues have increased due to lower capability of the sugar industry to pay the farmers.
"Government has taken many decisions for reduction of cane farmers' dues," the release said .
