“Industry welcomes revision of ethanol price for the next supply season of 2022-23 which will commence from 1st December 2022. The revised prices announced for ethanol manufactured from C-Heavy molasses and B-Heavy molasses will encourage sugar mills to divert more sugar towards ethanol production. However, the revision of price of ethanol manufactured from Sugarcane juice/sugar syrup is not enough to drive additional investments in new capacity building. The industry has represented many times to the Government that the price of ethanol produced from sugar juice/syrup should be based on Return on Equity with a payback period of 5 years. The derived price based upon ROE works to Rs 69.85 / ltr.
The price of Rs.65.61/ ltr announced by the Government today would still make the investors shy away from the much needed infusion into the sector for ethanol capacities. We would request the Government to have a re-look and increase the price of ethanol procured from sugar juice/syrup.
2022-23 ESY is a crucial year, as the country is expected to achieve 12% ethanol blending. The total requirement is 651 Cr ltrs to ethanol. Sugar mills are expected to divert about 45 lakh tons of sugar towards ethanol production. A higher fixed price of ethanol derived from sugarcane juice/sugar syrup would have given the industry much needed push to meet target set by the Hon’ble PM.”
Mr. Sonjoy Mohanty, DG-ISMA