Indian sugar mills association

Millers body seeks hike in ethanol and sugar prices

Date:	20 Sep 2023

Source:	The Times Of India

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News ID:	56950

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NEW DELHI: The apex body of the sugar industry, ISMA, on Wednesday raised the demand to increase the ethanol price by Rs 4 per litre to Rs 69.85 and urged the government to come out with a long term policy and formula for ethanol pricing. It said these two steps will encourage mills to expand capacity by around 400 crore litres of ethanol by 2025 to achieve 20% blending in petrol.

The entity also demanded an increase in the minimum selling price of sugar to Rs 38 per kg from the current Rs 31 per kg in view of an increase in the cost of production.

Interacting with mediapersons, Indian Sugar Mills Association (ISMA) president Aditya Jhunjhunwala said the industry requires around Rs 17,500 crore to increase the capacity to produce 1,100 crore litres of ethanol from the current level of 700 crore litres. “At present, we operate at 80% capacity utilisation....To facilitate the huge investment of Rs 17,500 crore we need to have a long term ethanol pricing policy,” he said.

Jhunjhunwala said the ISMA will come out with a fresh sugar production estimate for the 2023-24 marketing year (October-September) next month after analysing the satellite image of sugarcane area across major producing states and only then would be able to assess whether there is any surplus for exports after meeting the domestic demand of sugar and ethanol.

The ISMA chief said the government should devise some formula for fixation of ethanol price for blending with petrol and the price should be increased as the government has fair and remunerative price (FRP) of sugarcane, which is the minimum price that mills pay to farmers for sugarcane purchase.

Jhunjhunwala said there is enough stock of nearly 55 lakh tonnes of sugar to meet the requirement and also start the next season with a good opening stock.

On the demand to increase the minimum selling price by mills, Jhunjhunwala said the sugar prices in India are the lowest. The price is higher even in the neighbouring countries of Pakistan and Bangladesh, and as high as Rs 80-90 a kg in Europe. “The minimum sale price of sugar should be linked to the increased FRP of sugarcane and other costs,” he said.

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