India Approves Ethanol Price Increase

India's cabinet has recently approved a 5% increase in the price of ethanol to ease pressure on suppliers of the fuel and cut crude imports. The price of ethanol was fixed at 40.85 rupees, or $0.6327 per liter, and would be in effect for a year starting on December 1, 2017.

India has been aiming to boost the use of ethanol as a cleaner fuel option in terms of carbon emissions. The government has also made it mandatory to blend 5% ethanol in petrol. However, oil companies find it difficult to source the sugar by-products cheaply due to its use in the heavily taxed liquor industry. Furthermore, sugar mills prefer to sell to higher-paying spirit distilleries, where they get a better and quicker deal.

Indian millers use molasses, a by-product of sugar-making, to produce ethanol, so a rise in sugar production will also boost ethanol output.


This article is part of the Crop Biotech Update, a weekly summary of world developments in agri-biotech for developing countries, produced by the Global Knowledge Center on Crop Biotechnology, International Service for the Aquisition of Agri-Biotech Applications SEAsiaCenter (ISAAA)

Subscribe to Crop Biotech Update Newsletter
Crop Biotech Update Archive
Crop Biotech Update RSS
Biofuels Supplement RSS

Article Search: