After the Centre announced an increase in the price of ethanol procured by public sector oil marketing companies for one year starting December, Coimbatore-based Sakthi Sugars on Tuesday welcomed the move by the Modi government.
In an interview to CNBC-TV18, M. Manickam, chairman and managing director, said, "The rupee is tanking and the oil prices domestically are going up, so it’s a good thing that they are matching it. It will be good for the sugar industry that we will be able to divert more sugar into ethanol."
He further said an increase of Rs 2 in the price of ethanol would mean a gain of Rs 130 per tonne.
The price of ethanol derived from C heavy molasses has been increased from Rs 43.46 a litre to Rs 43.75 per litre, and for B heavy molasses to Rs 54.27 per litre from Rs 52.43 earlier, an official release said.
Also, the price of ethanol from sugarcane juice, sugar, sugar syrup route has been fixed at Rs 59.48 per litre.
The increased prices have been approved for the forthcoming sugar season 2019-20 and will be applicable from December 1, 2019, to November 30, 2020.(With inputs from PTI)