Agri Business

CCEA okays ethanol price hike up to 2.5%

Our Bureau New Delhi | Updated on November 10, 2021

Will come into force from December 1; approves cotton, jute support package

The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in price of ethanol derived from various sugarcane-based raw materials, including sugarcane juice and molasses, from the new ethanol marketing season starting December 1.

The CCEA, in its meeting on Wednesday, also gave its nod to committed price support of ₹17,408.85 crore to the Cotton Corporation of India (CCI) for the cotton seasons (October-September) from 2014-15 to 2020-21 and mandated that 100 per cent foodgrain and 20 per cent sugar be packed in jute bags.

“The price of ethanol from C heavy molasses route be increased from ₹45.69 per litre to ₹46.66 per litre. The price of ethanol from B heavy molasses route be increased from ₹57.61 to ₹59.08.

“The price of ethanol from sugarcane juice, sugar/sugar syrup route be increased from ₹62.65 to ₹ 63.45 per litre,” according to an official release.

Additionally, GST and transportation charges will also be payable.

Blending programme

The price increase is under the Ethanol Blending Programme for the forthcoming sugar season 2021-22 during Ethanol Supply Year 2021-22 from December 1, 2021 to November 30, 2022. The approval will not only facilitate providing price stability and remunerative prices for ethanol suppliers, but also help in reducing the pending arrears of cane farmers, dependency on crude oil imports and in savings foreign exchange, besides bringing benefits to the environment, the release said.

The decision to allow Oil PSEs to decide the price of 2G ethanol is expected to facilitate setting up advanced bio-fuel refineries in the country.

Support for cotton, jute

Elaborating on the decision to price support to CCI, the statement said in order to safeguard the interests of cotton farmers, it was expedient to conduct price support operations during 2014-15 to 2020-21 cotton seasons as the natural fibre prices topped the minimum support price.

“Its implementation enhances the inclusiveness of the cotton farmers in the economic activity of the country. Price support operations help stabilise the cotton prices and alleviate farmer’s distress,” it said.

Mandatory packaging norms for Jute year 2021-22 providing for 100 per cent of foodgrain and 20 per cent of sugar to be compulsorily packed in jute bags, was also approved by the CCEA.

“The reservation norms in present proposal would further protect the interest of domestic production of raw jute and jute packaging material in lndia, thereby, making India self-reliant in consonance with Aatmanirbhar Bharat,” the release said.

Reservation for packaging in jute packaging material consumed around 66.57 per cent of the raw jute produced in the country (in 2020-21). By bringing into effect the provision of JPM Act, the government seeks to provide relief to 0.37 million workers employed in jute mills and ancillary units as well as support the livelihood of around 4 million farm families.

Published on November 10, 2021

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