The Union government on Wednesday hiked the price of ethanol extracted from sugarcane by Rs 1.47 per litre for the 2021-22 marketing year. The ethanol is used for blending in petrol. The renewed price, part of the government's target to achieve 20 per cent doping by 2025, shall come into force starting December.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Modi, raised the price of ethanol extracted from sugarcane to Rs 63.45 per litre. It is presently 62.65 per litre.
The price of ethanol from C-heavy molasses has also been increased from Rs 45.69 per litre to Rs 46.66 per litre. The price of ethanol from B-heavy, likewise, has been increased from Rs 57.61 per litre to Rs 59.08 per litre, Information and Broadcasting Minister Anurag Thakur informed.
In the 2020-21 marketing year (December-November), the ethanol blending with petrol had touched 8 per cent. This is expected to reach 10 per cent in the upcoming year. By 2025, India intends to increase blending to 20 per cent.
Oil Marketing Companies (OMCs) buy ethanol at a price fixed by the government. Higher mixing of ethanol in petrol shall help cut India's oil import bill and benefit sugarcane farmers and sugar mills.