The Union Cabinet on Wednesday cleared higher ex-mill price for ethanol produced from C-heavy molasses to Rs 57.97 from Rs 56.28 per litre, said Union Information & Broadcasting Minister Ashwini Vaishnaw.
This decision is expected to boost the ethanol industry and encourage more production of ethanol from C-heavy molasses, a byproduct of sugar production. The increase in price will make it more attractive for sugar mills to produce ethanol, which can be used as a clean and sustainable alternative to fossil fuels.
India has been promoting the use of ethanol as a biofuel to reduce its dependence on imported oil and curb pollution. The government has set a target of blending 20% ethanol in petrol by 2025, and this move is a step towards achieving that goal.
Benefits of Higher Ex-Mill Price for Ethanol
- Encourages more production of ethanol from C-heavy molasses
- Boosts the ethanol industry
- Reduces dependence on imported oil
- Curbs pollution and promotes clean energy
Challenges and Road Ahead
While the increase in ex-mill price for ethanol is a positive development, there are challenges that need to be addressed. The availability of C-heavy molasses and the capacity of sugar mills to produce ethanol are some of the key issues that need to be tackled.
Going forward, the government will need to work closely with the sugar industry to ensure a smooth transition towards higher ethanol production. This will require investments in infrastructure, technology, and research to make the ethanol industry more efficient and sustainable.
