The government on Wednesday hiked the price of ethanol extracted from sugarcane for blending in petrol by up to ₹1.47 per litre for 2021-22 marketing year starting December, as part of its target to achieve 20% doping by 2025. Higher mixing of ethanol in petrol will help cut India its oil import bill and also benefit sugar cane farmers as well as sugar mills.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, raised the price of ethanol extracted from sugarcane juice to ₹63.45 per litre from the current ₹62.65 per litre for the supply year beginning December 2021.
The rate for ethanol from C-heavy molasses has been increased to ₹46.66 per litre from ₹45.69 per litre currently, and that of ethanol from B-heavy to ₹59.08 per litre from ₹57.61 per litre, Information and Broadcasting Minister Anurag Thakur said at a media briefing.
Oil Marketing Companies (OMCs) buy ethanol at a price fixed by the government. Thakur said the ethanol blending with petrol has touched 8% in the 2020-21 marketing year (December-November) and is expected to reach 10% in the next year. India has plans to increase the blending to 20% by 2025.
