Jun 17 () The Food Ministry seems to be not in favour of increasing ethanol price from the current Rs 40.85 per litre as the rate of molasses has fallen due to bumper sugarcane crop in the 2017-18 season.
The sugar industry and even NCP supremo Sharad Pawar have demanded a higher ethanol price to improve the liquidity of cash-starved mills and enable them clear cane arrears that have crossed Rs 22,000 crore.
Oil marketing companies (OMCs) procure ethanol from sugar mills for blending with petrol. Mills are expecting revenue realisation of over Rs 5,000 crore from sale of ethanol to OMCs during the 2017-18 season (October-September).
“We cannot fix higher ethanol price just because the industry wants it. It has to be based on the cost of production. Molasses prices were taken at Rs 6,000 per quintal when the 2017-18 ethanol price was determined,” a senior Food Ministry official said.
However, the official said that prices of molasses have plummeted to Rs 1,500-2,000 per quintal on account of bumper sugarcane production. Read More
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