The Union Cabinet sanctioned a 3% rise in the procurement price for ethanol derived from C-heavy molasses, setting it at Rs 57.97 per liter for the 2024-25 supply year.. Rates for other feedstocks remained unchanged. The period from November to October is the ethanol supply year. The majority of the ethanol produced from sugarcane is now made from B-heavy molasses and straight from sugarcane juice, although a few years ago, sugar corporations preferred to use C-heavy molasses. Compared to other sugarcane feedstocks, C-heavy molasses has a relatively low sugar content. The cost of ethanol made from B-heavy molasses and sugarcane juice, sugar, and sugar syrup is still Rs 60.73 and Rs 65.61 per liter.
The Indian Sugar and Bio Energy Manufacturers Association (ISMA) expressed disappointment with the lack of price increases for B-heavy molasses and ethanol made from cane juice, and urged the government to reevaluate suitable price adjustments to support sector viability and guarantee farmers receive payments on time.
Ethanol blending by public sector oil marketing organizations increased from 38 crore liters in 2013-14 to 707 crore liters in 2023-24, resulting in an average blending rate of 14.60 percent. The Ethanol Blending Programmed (EBP) has resulted in foreign exchange savings of more than Rs 1,13,007 crore and replaced about 19.3 million tones of crude oil throughout the decade ending December 1, 2024.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Source:- Business Standard