Ethanol procurement mechanism

Cabinet Committee on Economic Affairs has approved a mechanism for procurement of ethanol by Public Sector Oil Marketing Companies under Ethanol Blended Petrol programme. As per this programme, a revised ethanol price has been approved by the committee chaired by Prime Minister, Narendra Modi. These revised prices will be applicable for ethanol to be supplied to Public Sector OMCs for Ethanol Supply Year 2021-22. The price is defined on the basis of ethanol derived from different sugarcane based raw materials under the EBP Programme for the forthcoming sugar season 2021-22 during ESY 2021-22 from December 01, 2021 to November 30, 2022. The price of ethanol from C heavy molasses route will be revised from Rs.45.69 per litre to Rs.46.66 per litre and the one derived from B heavy molasses route will be increased from Rs.57.61 per litre to Rs.59.08 per litre. The price of ethanol derived from sugarcane juice, sugar or sugar syrup route will be increased from Rs.62.65 per litre to Rs.63.45 per litre as per the release published by the ministry. In addition to this, GST and transportation charges will also be payable. Grain based ethanol prices are yet to be discussed by OMCs. The decision for the price of second generation ethanol would rest upon Oil PSEs as it will facilitate setting up of advanced biofuel refineries in the country. This renewal of pricing will also bring stability and additional remuneration for ethanol suppliers. It is expected to help reduce the pending arrears of cane farmers.