The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi has approved the Mechanism for procurement of ethanol by Public Sector Oil Marketing Companies (OMCs) to carry out the Ethanol Blended Petrol (EBP) Programme- Revision of ethanol price for supply to Public Sector OMCs.
Now, CCEA has approved the following for the forthcoming sugar season 2018-19 during ethanol supply period from 1st December 2018 to 30th November 2019:-
1. To fix the ex-mill price of ethanol derived out of C heavy molasses to Rs.43.70 per liter (from prevailing price of Rs.40.85 per liter). Additionally, GST and transportation charges will also be payable.
2. To fix the ex-mill price of ethanol derived from B-heavy molasses and sugarcane juice at Rs.47.49 per liter.
Additionally, GST and transportation charges will also be payable.
3. As the price of ethanol is based on estimated FRP for sugar season 2018-19, it will be modified by MoP&NG as per actual Fair & Remunerative Price (FRP) declared by the Government.
4. For ethanol supply year 2019-20, ethanol prices will be modified by MoP&NG as per normative cost of molasses and sugar derived from FRP of sugarcane.
Ethanol availability for EBP Programme is expected to increase significantly due to the higher price for C heavy molasses-based ethanol and enabling procurement of ethanol from B heavy molasses and sugarcane juice for the first time. Increased ethanol blending in petrol has many benefits including reduction in import dependency, support to the agricultural sector, more environmentally friendly fuel, lesser pollution and additional income to farmers.
Government is also deciding the price of B heavy molasses and Sugarcane juice for the first time which is likely to positively impact the capability of the sugar industry to pay farmers dues and increase the availability of ethanol for EBP Programme. This is also in line with the National Policy on Biofuels — 2018 announced by the Government during May 2018 which has widened the scope of raw material for ethanol production.