NEW DELHI: The cabinet on Wednesday approved a 3% increase in the procurement price of ethanol made from C-heavy molasses (CHM) to Rs 57.9 per litre for the 2024-25 supply year (Nov to Oct), while keeping rates unchanged for ethanol produced from B-heavy molasses, sugarcane juice, sugar, sugar syrup and other feedstock.
CHM is the last by-product of the sugar refining process and has the least content of the sweetener. Sources said the govt has gone for marginal increase in ethanol prices as it prioritises procuring from the most cost-effective sources. Since the prices of B-heavy molasses and sugarcane have remained unchanged, procurement costs for oil marketing companies will be largely unaffected.
Union minister Ashwini Vaishnaw said, “C-heavy molasses has no sugar content. Increasing use of C-heavy molasses for ethanol is beneficial for the country, farmer and environment. This is why it is being promoted.” tnn