Overall another excellent and very positive policy decision: ISMA on hike in ethanol prices

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New Delhi: To reduce sugar glut, the government had taken various measures from time to time. In a recent relief to sugar mills, government hiked the ethanol prices for 2019-20 season. And the Industry body Indian Sugar Mills Association (ISMA) has welcomed this decision by Central government.

Sugar mills in India are under stress because of unsold stocks. Therefore, the government is emphasising on ethanol production to strengthen the financial condition of sugar factories.

Avinash Verma, director general, Indian Sugar Mills Association (ISMA) in a released statement said, “Government’s decision to increase ethanol price once again, with special emphasis and a higher increase for ethanol made from B-heavy molasses, confirms the government’s commitment towards encouraging more diversion of the surplus sugarcane/sugar into ethanol. The second very important decision of allowing a single premium price for the ethanol made from partial or 100 per cent sugarcane juice is another big and positive step in this direction. These decisions will help in further increasing the ethanol blend levels from the current 6 per cent average levels across the country.”

“The industry is responding very positively by hugely investing in new or expansion of ethanol production capacities, which will ensure that we will achieve the government’s 10 per cent ethanol blend targets almost certainly by 2022. Overall another excellent and very positive policy decision by the government to encourage more production of the green bio-fuel and at the same time reducing some of the surplus sugar as also helping in more timely payment to our cane farmers.” ISMA further added.

The government increased the price of ethanol from C heavy molasses from Rs.43.46 per litre to Rs.43.75 per litre, and the price of ethanol from B heavy molasses hiked from Rs.52.43 per litre to Rs.54.27 per litre.

Sugar millers have been requesting to allow to produce ethanol from sugar. Considering the same, price of ethanol from sugarcane juice/sugar/sugar syrup route be fixed at. 59.48 per litre.

The Central Government has the vision to achieve 20 per cent ethanol blending with petrol by 2030. As sugar mills in Maharashtra have been facing issues with depressing sugar prices, surplus stocks and piling cane arrears, experts believe the production of ethanol will aid sugar mills to improve the financial condition and to clear cane arrears.

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