The Centre is set to increase the procurement price of all three categories of ethanol produced from different sources by ₹ 2.50 3 per litre for the 202021 season.

This move is aimed at encouraging more mills to divert sugarcane towards producing ethanol rather than sugar.

Ethanol is currently allowed to produce from Cheavy molasses, Bheavy molasses, and sugar -cane juice or syrup or direct sugar.

It is also allowed to be made from broken unused grains.

The price hike recommendation is for ethanol derived from sugarcane.

According to sources, a Cabinet Committee on Economic Affairs is expected to decide on the same soon.

The ethanol procurement season by oil marketing companies starts from December 1