CCEA announces revised ethanol prices for supply to QMCs for ESY 2022-23

The Cabinet Committee on Economic Affairs chaired by the prime minister has approved higher ethanol prices derived from different sugarcane based raw materials under the Ethanol Blended Petrol Programme (EBP) for the forthcoming sugar season 2022-23. The government has revised ethanol price for supply to public sector QMCs for ethanol supply year (ESY) 2022-23. 

First, the price of ethanol from C heavy molasses route is increased from Rs 46.66 per litre to Rs 49.41 per litre. Second, the price of ethanol from the B heavy molasses route is increased from Rs 59.08 per litre to Rs 60.73 per litre. Third, the price of ethanol from sugarcane juice/sugar/sugar syrup route is increased from Rs 63.45 per litre to Rs 65.61 per litre. Additionally, GST and transportation charges will also be payable.

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 programme. Remunerative price to ethanol suppliers will help in early payment to cane farmers thereby minimising difficulty of sugarcane farmers.

The government of India has taken many decisions for reduction of cane farmer’s dues including diversion of sugar and sugar-based feedstock for production of ethanol. Large quantity of ethanol is available from the beginning of sugar season due to conversion of sugarcane juice and B heavy molasses to ethanol. Thus, it has been decided to redefine ESY as a period of ethanol supply from November 1 of a year to October 31 of the following year from November 1, 2023 onwards. Moreover, as the Fair and Remunerative Price (FRP) of sugarcane and ex-mill price of sugar have undergone changes, there is a need to revise the ex-mill price of ethanol derived from different sugarcane-based feed stocks.