The Cabinet Committee on Economic Affairs chaired by the Prime Minister Narendra Modi has approved Ethanol procurement by OMCs (Oil Marketing Companies) and also fixed Ethanol prices for forthcoming sugar season. 

 

The Committee has also fixed higher Ethanol prices 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 1st December 2020 to 30th November 2021. 

 

The price of Ethanol from C heavy molasses route be increased from Rs. 43.75 per liter to Rs. 45.69 per litre; Price of Ethanol from B heavy molasses route be increased from Rs. 54.27 per liter to Rs. 57.61 per litre; and Price of Ethanol from sugarcane juice/sugar/sugar syrup route be increased from Rs. 59.48 per liter 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 disincentive. 

 

In order to offer fair opportunity to the localized industry within the state and reduce criss cross movement of Ethanol, OMCs shall decide the criteria for priority of Ethanol from various sources taking in account various factors like cost of transportation, availability, etc. This priority will limit the excisable boundaries of the State/UT for production in that State/UT. Same order of preference will be given thereafter for import of Ethanol from other States wherever required.

 

All distilleries will be able to take advantage of the scheme and a large number of them are expected to supply Ethanol for the EBP programme. Remunerative price to Ethanol suppliers will help in reduction of cane farmer’s arrears, in the process contributing to minimizing difficulty of sugarcane farmers.

 

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%. This programme has been extended to the whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 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.