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Centre hikes ethanol prices
Why in the news ?
- In order to provide incentives for production of ethanol from sugarcane, government will offer a higher rate to those who produce 100 per cent ethanol from sugarcane, without producing any sugar.
Details
- The Petroleum minister said that the government wants to “encourage” the production of ethanol, so that less sugar is produced.
- He said, the amount of sugar being produced in the country, it is leading to sugar surplus.
- To reduce the production of sugar to the amount that is needed, the government has announced “three progressive” rates for ethanol.
- For ethanol derived from B heavy or B grade molasses, the price has been raised from Rs 47.49 to Rs 52.43 for every litre.
- The ex-mill price for ethanol produced from 100 per cent sugarcane juice, so that no sugar is produced from it, is Rs. 59.19 per litre.
- However, ethanol produced from C heavy or C grade molasses will be priced at Rs 43.46 per litre compared to Rs 43.70 earlier.
- Apart from reducing excess sugar in the country and increasing liquidity with the sugar mills for settling cane farmer’s dues the incentives will also help in making higher ethanol available for Ethanol Blended Petrol (EBP) Programme.
Ethanol
- Ethanol fuel is ethyl alcohol, the same type of alcohol found in alcoholic beverages.
- Also used as fuel.
- It is most often used as a motor fuel, mainly as a biofuel additive for gasoline.
- Ethanol is one of the main ingredients in cosmetics and beauty products.