Fueling the Future: OMCs Spike Ethanol Price, Raising Eyebrows and Hopes

30 Dec 2023 , 02:17 PM

Reports from Reuters on Friday indicate that India’s state fuel wholesalers have increased the procurement rates for ethanol produced from C-heavy molasses by 6.87 rupees per litre to Rs 56.28 per litre.

The goal of the action is to increase ethanol production, which is used to mix with fuel. In India, ethanol makes up more than 10% of each litre of petrol sold, and the country has set a goal to increase blending to 20% by 2025.

In an effort to boost sugar supplies by reducing ethanol output, New Delhi ordered sugar mills earlier this year not to use cane juice or syrup for ethanol production.

The only source of ethanol that the government permitted mills to use was C-heavy molasses, a byproduct of cane that contains very little sugar.

For feedback and suggestions, write to us at [e-mail]