The Cabinet Committee on Economic Affairs on October 29, 2020 approved fixing higher ethanol price derived from different sugarcane based raw materials under the Ethanol Blended Petrol (EBP) Programme for the forthcoming sugar season 2020-21 during Ethanol Supply Year (ESY) 2020-21 from 1st December 2020 to 30th November 2021.
- The price of ethanol from C heavy molasses route has been increased from Rs.43.75 per lit to Rs.45.69 per litre, the price of ethanol from B heavy molasses route has been increased from Rs.54.27 per litre to Rs.57.61 per litre and the price of ethanol from sugarcane juice / sugar / sugar syrup route has been increased from Rs.59.48 per lit to Rs.62.65 per litre.
Ethanol Blended Petrol (EBP) Programme
- Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10%.
- This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 to promote the use of alternative and environment friendly fuels.
- This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector.
- Government has notified administered price of ethanol since 2014.
- For the first time during 2018, differential price of ethanol based on raw material utilized for ethanol production was announced by the Government.
- Ministry of Petroleum and Natural Gas has published “Ethanol Procurement Policy on a long term basis under EBP Programme”.
- With a view to limit sugar production in the Country and to increase domestic production of ethanol, Government has taken multiple steps including, allowing diversion of B heavy molasses, sugarcane juice, sugar and sugar syrup for ethanol production.
(Source: PIB)
