CCEA hikes ethanol procurement price for fuel blending

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has given its approval to increase price of ethanol procured by public sector oil marketing companies (OMCs) for one year starting December 2019. It also increased price of ethanol derived from C heavy molasses from Rs 43.46 a litre to Rs 43.75 per litre, and for B heavy molasses to Rs 54.27 per litre from Rs 52.43 earlier. It also has fixed price of ethanol from sugar, sugarcane juice, sugar syrup route at Rs 59.48 per litre. The increased prices have been approved for the forthcoming 2019-20 sugar season and will be applicable from 1 December 2019 to 30 November 2020.


Union Government is implementing Ethanol Blended Petrol (EBP) Programme wherein Oil Marketing Companies (OMCs) sell petrol blended with ethanol up to 10%. This programme was extended to whole of India except UTs of Andaman Nicobar and Lakshadweep islands with effect from April 2019 to promote use of alternative and environment friendly fuels. This intervention also seeks to give boost to agriculture sector and reduce import dependence for energy requirements.

Government had notified administered price of ethanol since 2014 and since 2018 Government for first time announced differential price of ethanol based on raw material for ethanol production. These decisions have significantly improved supply of ethanol and also ethanol procurement by Public Sector OMCs has increased from 38 crore litre in ethanol supply year 2013-14 to estimated over 200 crore litre in 2018-19. Government has taken multiple steps to limit sugar production in the Country and to increase domestic production of ethanol. These steps include allowing diversion of B heavy molasses and sugarcane juice for ethanol production.




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