The government authorised a rise in ethanol prices on Wednesday, as well as the restoration and continuation of the Member of Parliament Local Area Development Scheme (MPLADS) and support for Cotton Corporation of India’s minimum support price (MSP) activities worth Rs 17,408.85 crore.
The Cabinet Committee on Economic Affairs (CCEA) also increased the price of sugarcane-based ethanol for blending with petrol for the supply year 2021-22 by up to $1.47 per litre.
The price of ethanol extracted from C heavy molasses has been increased to ₹46.66 per litre, from ₹45.69, and that of ethanol obtained from B heavy molasses to ₹59.08, from ₹57.61. Ethanol produced from sugarcane juice, sugar/sugar syrup is ₹63.45 per litre, up from ₹62.65. Transportation charges and GST will have to be paid separately. Oil marketing PSUs such as Indian Oil, HPCL and BPCL obtain ethanol from distilleries at government-determined rates to mix with petrol. “The government has decided oil PSEs should be given the freedom to decide pricing for 2G ethanol as this would help in setting up advanced biofuel refineries,” an official statement said.
The price of ethanol made from C heavy molasses has risen to ₹46.66 per litre, up from ₹45.69, and the price of ethanol made from B heavy molasses has risen to ₹59.08 per litre, up from ₹57.61. Ethanol produced from sugarcane juice, sugar/sugar syrup now costs ₹63.45 per litre, up from ₹62.65 previously. Separate transportation and GST payments will be required. Indian Oil, HPCL, and BPCL are oil marketing PSUs that obtain ethanol from distilleries at government-determined rates to combine with petrol. “The government has agreed that oil PSEs should have the authority to set pricing for 2G ethanol, as this will aid in the establishment of advanced biofuel refineries,” according to an official statement.
Cotton Support
From 2014-15 to 2020-21, the CCEA approved committed price support of Rs 17,408.85 crore to the Cotton Corporation of India to reimburse losses under MSP operations for seven cotton seasons (October to September).
“It is prudent to conduct price support operations in cotton years 2014-15 to 2020-21 as cotton prices approach MSP levels in order to safeguard the interests of cotton farmers,” the government stated in a statement.