Cabinet gives approval for fixing ethanol price under EBP Programme

All distilleries will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for the EBP program.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Shri Narendra Modi has given its approval for the following, including fixing higher ethanol price derived from different raw materials under the EBP Programme for the forthcoming sugar season 2019-20 during ethanol supply year from 1st December 2019 to 30th November 2020:

(i)         The price of ethanol from C heavy molasses route be increased from Rs.43.46 per lit to Rs.43.75 per liter,

(ii)        The price of ethanol from B heavy molasses route be increased from Rs.52.43 per lit to Rs.54.27 per liter,

(iii)       The price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at Rs.59.48 per liter,

(iv)       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 disincentivized,

(v)        OMCs are advised to continue according to the priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B heavy molasses 3) C heavy molasses and 4) Damaged Food grains/other sources, in that order,

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

Ethanol availability for EBP Programme is expected to increase significantly due to higher price being offered for procurement of ethanol from all the sugarcane-based routes, subsuming “partial sugarcane juice route” and “100% sugarcane juice route” under “sugarcane juice route” and for the first time allowing sugar and sugar syrup for ethanol production. Increased ethanol blending in petrol has many benefits including a reduction in import dependency, support to the agricultural sector, more environmentally friendly fuel, lesser pollution and additional income to farmers.

(With Inputs from PIB)