Centre may increase ethanol, sugar prices

Union Food Minister Pralhad Joshi announces potential ethanol price increase and sugar minimum selling price adjustment for 2024-25.

“The Centre may increase the price of ethanol for the 2024-25 season and the minimum selling price of sugar,” Union Food Minister Pralhad Joshi said on Thursday (September 26, 2024).

The Minister said the Government has asked the Niti Aayog to prepare a roadmap for 25% blending of ethanol in petrol over the next few years as the present target of 20% blend is likely to be achieved soon.

Ethanol, produced from cane juice, is priced at ₹ 65.61 per litre which has not been increased since 2022-23. The minimum selling price of sugar is ₹31 per kilogram since February 2019.

“In the last 10 years, from ethanol sales, sugar mills have earned higher revenue, use of ethanol-blend petrol has reduced emissions of greenhouse gases, and greater investment opportunities emerged, leading to the establishment of new distilleries in rural areas and contributing direct and indirect employment generation as well,” the Minister said at the India Sugar and Bioenergy Conference.

Mr. Joshi said the Centre is committed to a robust, sustainable sugar industry that is not only an economic pillar but also a driving force in the country’s renewable energy landscape. He said that in the last 10 years, area under sugarcane cultivation increased by about 18% while sugarcane production increased by 40%.

“With the introduction of the minimum selling price, the area of pending cane dues of farmers has become a thing of the past. Cane dues pendency is at an all-time low in India, with around 99% of cane dues out of ₹ 1.14 lakh crore having been paid to farmers with support of the sugar industry,” he said.

The Minister said the farmers are evolving from being the ‘anna daatas’ (grain providers) and becoming ‘urja daatas’ (energy providers), reflecting the vital role they play in India’s renewable energy landscape. He said this synergy between agriculture and green energy is essential for building a sustainable and resilient future for India, aligning with the country’s global climate goals of net zero emissions by 2070. “We have already achieved targets of the Paris climate agreement well ahead of time,” he said.