The Food Minister Pralhad Joshi stated on Thursday that the government is expected to approve raising the minimum sale price (MSP) for sugar as well as domestic ethanol pricing, as requested by the industry.
In addition to the mills’ MSP for sugar, Joshi stated that the government is considering proposals to raise the price of ethanol for the 2024–25 ethanol supply year. Since February 2019, the current sugar MSP has not changed from Rs 31/kg.
The action is intended to support the ethanol blending program, which aims to blend 20% ethanol into gasoline by 2025–2026. An official statement states that during the current Ethanol Supply Year (ESY) 2023–24 (November–October), the cumulative blending percentage has surpassed 13.6% and reached 15.83% in July 2024.
Since the ethanol supply year of 2022–2023, the government-fixed prices for ethanol have not increased. The price of ethanol made from cane juice is currently Rs 65.61 per litre, whereas the prices of ethanol made from B- and C-heavy molasses were Rs 60.73 and Rs 56.28 per litre, respectively.
Under the EBP Program, public sector oil marketing businesses sell gasoline that has been blended with ethanol. Under the EBP Program, the amount of gasoline blended with ethanol went from 38 crore liters in ESY 2013–14 to over 1623 crore liters in ESY 2023–24. This increase in blending percentage also occurred, rising from 1.3% to 13.6%.
The government believes that the ethanol blending scheme is essential to fulfilling its green energy pledges and bolstering sugar mills’ bottom lines.
The government had previously requested the Indian Sugar Mills and the Bio-Energy Manufacturers Association (ISMA) to raise the millers’ minimum sugar price (MSP) and boost the fair and remunerative price (FRP) of sugarcane pads for farmers.
