The Cabinet Committee on Economic Affairs has hiked the price of ethanol to be procured by oil marketing companies (OMCs) for carrying out the Ethanol Blended Petrol (EBP) Programme.
An official statement said that the CCEA has decided to fix the ex-mill price of ethanol derived out of C heavy molasses to ₹ 43.70 per litre (from prevailing price of ₹ 40.85 per litre). The ex-mill price of ethanol derived from B-heavy molasses and sugarcane juice has been fixed at ₹ 47.49 per litre. Additionally, GST and transportation charges will also be payable by the OMC.
The revised procurement prices are for the forthcoming sugar season 2018-2019 during ethanol supply period from December 1, 2018 to November 30, 2019.
But these prices may not be the final price at which ethanol will be procured by OMCs. The CCEA statement said, “As the price of ethanol is based on estimated Fair & Remunerative Price (FRP) for sugar season 2018-2019, it will be modified by the Ministry of Petroleum and Natural Gas as per the actual fair and remunerative price declared by the Government.”
A sugar mill industry body representative told BusinessLine , “The FRP for the sugar season 2018-2019 has not yet been announced by the government. It is usually announced during February – March every year and there has been a delay. The procurement price of ethanol may go up or down as per the FRP when announced by the government.”
The CCEA also relieved itself of the responsibility of controlling ethanol price for blending in the next ethanol supply season and put the onus on the Petroleum Ministry. “For ethanol supply year 2019-2020, ethanol prices will be modified by the Ministry of Petroleum and Natural Gas as per normative cost of molasses and sugar derived from FRP of sugarcane,” the statement said.