In India, Money Control reports sugar stocks in India saw an uptick of up to 5% amid reports that the government is poised to raise ethanol prices to foster production and meet its ambitious 20% blending target by 2025-26. Since the 2022-23 season, ethanol prices have been stagnant at Rs 65.61 per litre, a status quo that may soon change if the government’s proposal goes through.
This potential price hike stems from discussions led by a joint secretary from the petroleum ministry, with the aim of aligning ethanol pricing with the fair and remunerative price of sugarcane. The move is part of a broader strategy to diversify feedstocks and bolster biofuel production to achieve energy independence and reduce carbon emissions.
The buzz around this proposal was given further credence last week when Cooperation Minister Amit Shah advocated for a multi-dimensional approach to biofuel manufacturing. Minister Shah’s endorsement of the plan highlights the government’s commitment to reaching the 20% blending milestone by 2025-26, significantly ahead of the previously set 2030 deadline. This proactive shift in policy could sweeten the prospects for sugar mills and ethanol producers, making it a potential windfall for the industry and investors alike.
Tags: ethanol, India, sugar
Category: Fuels
