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India raises ethanol rate by Rs 2.15 for blending in petrol

India raises ethanol rate by Rs 2.15 for blending in petrol

India raises ethanol rate by Rs 2.15 for blending in petrol
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By Parikshit Luthra  Nov 2, 2022 3:23:30 PM IST (Updated)

The rate of ethanol from C heavy molasses has increased from Rs 46.6 per litre to Rs 49.4 per litre, while the rate for ethanol from B heavy molasses has increased from Rs 59.08 per litre to Rs 60.73 per litre

India’s Cabinet Committee on Economic Affairs on Wednesday raised the price of ethanol extracted from sugarcane for blending in petrol by Rs 2.15 to Rs 65.6 per litre from last year's Rs 63.45 per litre.

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The rate of ethanol from C heavy molasses has increased from Rs 46.6 per litre to Rs 49.4 per litre, while the rate for ethanol from B heavy molasses has increased from Rs 59.08 per litre to Rs 60.73 per litre. 
In September, Shree Renuka Sugars said it was betting on ethanol going forward because it is green and carbon-neutral and helps improve the company's cash flows.
Its executive chairman Atul Chaturvedi had said the Indian government wants around 10.16 billion litres of ethanol by 2025, and right now, they have around 4 billion.
"The sky is the limit, more so because the ramping up of the grain ethanol capacity in the country has probably not kept pace as far as the expansion of the sugar sector is concerned. As far as the grain is concerned, the ethanol being supplied by the grain sector is only about 30 percent of the targeted quantity. But sugar is doing all right," he said.
In November last year, the government hiked the price of ethanol extracted from sugarcane for blending in petrol by up to Rs 1.47 per litre for the 2021-22 marketing year.
A higher blending of ethanol in petrol will help cut India's oil import bill and benefit sugar cane farmers and sugar mills.
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