Ahead of the Maharashtra elections, the central government may increase the price at which oil-marketing companies (OMCs) procure ethanol from sugar companies by up to â¹3 per litre for the 2024-25 marketing season, which started this month.
According to sources, a formal Cabinet note on this could be moved in a few days after the proposal gets clearance from a Group of Ministers (GoM) and other decision-making mechanisms.
The price increase covers ethanol produced from sugarcane juice and B-heavy molasses, the production of which was recently allowed again after nearly a year.
In the 2023-24 ethanol supply year (ESY), the procurement price of molasses-based ethanol, produced from sugarcane juice, was fixed at â¹65.61 per litre while that from B-heavy molasses was fixed at â¹60.73.
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