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Government approves 3% hike in procurement price of C-heavy molasses ethanol

30 Jan 2025 Evaluate

Government has approved 3% increase in the procurement price for ethanol made from C-heavy molasses to Rs 57.97 per litre for the 2024-25 supply year, while keeping rates unchanged for other feedstocks. The price increase, aimed at boosting ethanol production from sugar industry by-products, comes as India pushes to meet its accelerated target of 20% ethanol blending in petrol by 2025-26. 

Prices for ethanol produced from B-heavy molasses and sugarcane juice/ sugar/ sugar syrup remain unchanged at Rs 60.73 and Rs 65.61 per litre, respectively. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Public sector oil marketing companies (OMCs) will procure ethanol at the revised rates during the ongoing 2024-25 supply year (November-October) under the government’s Ethanol Blended Petrol (EBP) programme.

The price adjustment would help ensure adequate ethanol supplies to meet increased blending targets. State-run oil marketing companies aim to achieve 18% blending in the current supply year ending October 2025. Ethanol blending by public sector OMCs has risen from 38 crore litre in 2013-14 to 707 crore litre in 2023-24, achieving average blending of 14.60%.

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