A revision in prices of ethanol from sugarcane juice and B-Heavy molasses will support sector viability and ensure timely cane payments to farmers, says ISMA
Indian Sugar and Bio Energy Manufacturers Association (ISMA) has requested the Government to consider suitable increase in ethanol prices when produced from sugarcane juice and B-Heavy molasses (BHM) to support the sugar sector’s viability and ensure timely cane payments to farmers.
The Cabinet Committee on Economic Affairs (CCEA) on January 29 approved a 3 per cent rise in C Heavy Molasses (CHM) for the ethanol supply year 2024-25 (November-October). The new price will now be ₹57.97 a litre against ₹56.58 earlier. There has been no change made in prices of ethanol from other feedstock. Ethanol would continue to be purchased by oil marketing companies at ₹71.86 a litre when made from maize, at ₹65.61 from sugarcane juice/syrup, at ₹64 from damaged foodgrain (rice), and at ₹60.73 a litre from BHM. For ethanol from FCI’s subsidised rice, the price remains at ₹58.50/litre.Since CHM contains little sugar as it is the end product of processing in the sugar industry, when ethanol is produced from it, maximum amount of sugar could be produced. In last sugar season (October-September), the government had allowed ethanol only from CHM.
“With no price revision for the last two years, ISMA urges for a comprehensive revision in ethanol prices from sugarcane juice and BHM to support sector viability and ensure timely cane payments to farmers,” the industry body said in a statement.Highlighting that the sugar sector has invested around ₹40,000 crore for building up of huge capacities which has doubled in last five years -- around 850 crore litre per annum now – ISMA said that the industry is capable to increase its capacity further and can cater to achieve the blending targets as set by the government.
