NEW DELHI: In a move to provide relief to the sugar sector, which has been affected by a persistent glut in the sugar market, the Cabinet Committee on Economic Affairs (CCEA) approved hiking the prices of ethanol extracted from sugarcane.
This ethanol is procured by state-run oil marketing companies under the Centre’s Ethanol Blended Petrol (EBP) Programme and the higher prices will help the sugar industry pay their dues to sugarcane farmers.
The Centre has begun setting different prices for different varieties of ethanol since 2018, and prices have been hiked for all: from Rs 54.27 per litre to Rs 57.61 for B heavy molasses ethanol; from Rs 43.75 per litre to Rs 45.69 for C heavy molasses; and from Rs 59.48 per litre to Rs 62.65 for ethanol from sugarcane juice.
The CCEA has also advised OMCs to fix realistic transportation charges to ensure that long distance transportation of ethanol is not disincentivised. “Remunerative price to ethanol suppliers will help in reduction of cane farmer’s arrears,” the CCEA’s statement said.