The Union government on Tuesday announced revised prices of procurement for ethanol for Oil Marketing Compes which will be applicable from Dec 1 this year.
The decision was taken by the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi for the forthcoming sugar season from Dec 1, 2019, to November 30, 2020.
The price of procurement for C heavy molasses has been increased to Rs 43.75 per litre from Rs 43.46 per litre while the price of B heavy molasses will be increased from Rs 52.43 from Rs 54.27 and the price of ethanol from sugarcane juice, sugar or sugar syrup route has been fixed at Rs 59.48, according to a press release from Government Of India.
The government has further advised the Oil Marketing Compes to fix realistic transportation charges in order to ensure that long-distance transportation of ethanol is not disincentivised.
"OMCs are advised to continue according priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B heavy molasses 3) C heavy molasses and 4) Damaged Food grains/other sources, in that order," the press release stated.
All distilleries in the country will be able to take benefit of the scheme and a large number of them are expected to supply ethanol for the government's 'Ethanol Blended Petrol' programme.
According to the government, remunerative price to ethanol suppliers will help in the reduction of cane farmer's arrears, in the process contributing to minimizing the difficulty of sugarcane farmers.
( With inputs from ANI )