The Union Cabinet’s Cabinet Committee on Economic Affairs is set to meet on Wednesday, November 10 and a slew of decisions regarding the country’s economy are expected. As per reports, minister of information and broadcasting Anurag Singh Thakur is going to be present in the meeting, apparently scheduled at 3 pm on Wednesday in Delhi. The reports also suggest that like last year, the government is going to increase the price of ethanol extracted from sugarcane for doping in petrol. The price of ethanol extracted from sugarcane has been increasing in a steady manner over the past many months in the country.
As per sources who spoke to News18.com, the government may again give a green signal to increase the price of ethanol for ethanol blending. This can be a surge of around Rs 1 to Rs 2.50 per litre, the sources told News18.com. They also said that the new prices are likely to be implemented from December 2021.
With this possible hike the price of ethanol made from sugarcane juice will increased from Rs 62.65 to Rs 64 a litre, the sources said on Wednesday. Usually, the government fixes the price of ethanol supplied to oil marketing companies for doping in petrol.
Along with the price of ethanol, the government may also hike the prices of B heavy Molasses and C Heavy Molasses by Rs 1 to Rs 2.50, the abovementioned sources revealed.
India, which is 85 per cent dependent on imports to meet its oil needs, allows doping of up to 10 per cent ethanol in petrol with a view to cutting oil import and vehicular emissions as also offer a remunerative source for sugarcane farmers to sell their produce.
Last year too, the government had increased the prices of ethanol extracted from sugarcane. In a meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi in October last year, the government hiked ethanol price by Rs 3.34 per litre, as it “looked to ramp up the programme that has benefited farmers and also helped cut down oil import bill,” as per a PTI report.
With that hike the price of ethanol extracted from sugarcane juice went up to Rs 62.65 per litre from Rs 59.48 per litre for the supply year beginning December 2020. On the other hand, the rate for ethanol from C-heavy molasses had been increased from Rs 43.75 per litre to Rs 45.69 per litre. That of ethanol from B-heavy to Rs 57.61 per litre from Rs 54.27 per litre, the then I&B Minister Prakash Javadekar had told reporters in a briefing.
The government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 10 per cent. This programme has been extended to the whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from April 1, 2019, to promote the use of alternative and environment-friendly fuels.
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