+
Govt Considers Ethanol Price Increase for 2024-25 to Boost Production
POWER & RENEWABLE ENERGY

Govt Considers Ethanol Price Increase for 2024-25 to Boost Production

The government is considering a proposal to increase ethanol prices for the season beginning in November 2024, while also advocating for the diversification of feedstocks to meet the 20 per cent blending target by 2025-26, sources indicated. A committee led by a joint secretary from the petroleum ministry has already conducted an initial round of discussions on the proposal. They noted that the adjustment of ethanol prices will be determined based on the fair and remunerative price of sugarcane.

One source, who requested anonymity, mentioned that the price revision is being prioritized to encourage production and achieve the blending goals.

Last week, Cooperation Minister Amit Shah emphasised the need for a multi-dimensional approach to biofuel manufacturing and assured that India would meet its 20 per cent ethanol blending target by 2025-26, ahead of the original 2030 deadline. Ethanol prices, set by the government, have remained unchanged since the 2022-23 season (November-October). At present, ethanol produced from cane juice is priced at Rs 65.61 per litre, while ethanol from B-Heavy and C-Heavy molasses is priced at Rs 60.73 and Rs 56.28 per litre, respectively.

According to the sources, the government views the ethanol blending program as crucial for fulfilling its green energy commitments and enhancing the financial stability of sugar mills.

Official data reveals that ethanol blending in India reached 13.3 per cent by July of the current season, an increase from 12.6 per cent during the 2022-23 season.

The government is considering a proposal to increase ethanol prices for the season beginning in November 2024, while also advocating for the diversification of feedstocks to meet the 20 per cent blending target by 2025-26, sources indicated. A committee led by a joint secretary from the petroleum ministry has already conducted an initial round of discussions on the proposal. They noted that the adjustment of ethanol prices will be determined based on the fair and remunerative price of sugarcane. One source, who requested anonymity, mentioned that the price revision is being prioritized to encourage production and achieve the blending goals. Last week, Cooperation Minister Amit Shah emphasised the need for a multi-dimensional approach to biofuel manufacturing and assured that India would meet its 20 per cent ethanol blending target by 2025-26, ahead of the original 2030 deadline. Ethanol prices, set by the government, have remained unchanged since the 2022-23 season (November-October). At present, ethanol produced from cane juice is priced at Rs 65.61 per litre, while ethanol from B-Heavy and C-Heavy molasses is priced at Rs 60.73 and Rs 56.28 per litre, respectively. According to the sources, the government views the ethanol blending program as crucial for fulfilling its green energy commitments and enhancing the financial stability of sugar mills. Official data reveals that ethanol blending in India reached 13.3 per cent by July of the current season, an increase from 12.6 per cent during the 2022-23 season.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors.To read full article Click Here ..

Next Story
Real Estate

Glass, Reframed!

Glass façades, quintessential aesthetic building envelopes globally, have been widely adopted in India as well. But when the focus is high-performance building systems that deliver energy efficiency, comfort and architectural identity, glass isn’t the only preference. Combination solutions, involving glass and some other material, improve façade outcomes. Some combinations come at comparable prices, some at a higher price. Here is a selection of performance-oriented solutions...To read the full story Click Here ..

Next Story
Infrastructure Urban

Beyond Building Faster

India’s cities are expanding at an unprecedented pace, bringing new infrastructure and development opportunities while also intensifying challenges around mobility, public spaces, liveability and supporting infrastructure. The question, therefore, is not simply whether India can build faster, but whether it can build cities that work better.At a CW webinar, Are We Designing Better Cities – or Just Building Faster?, moderator Ar. Samir Shaikh, Founding Principal, AR&UD Studio, brought together perspectives from design, development, master planning and technology...To read the full artic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code