Cabinet Decisions: Approval for Ethanol Price Hike and New Mineral Policy

Cabinet Decisions: Approval for Ethanol Price Hike and New Mineral Policy

Cabinet Approves ₹16,300 Crore Mineral Mission and Ethanol Price Hike

The Union Cabinet, led by Minister Ashwini Vaishnav, has approved a ₹16,300 crore Mineral Mission aimed at boosting the sector. Additionally, the Cabinet has approved an increase in the ex-mill price of ethanol derived from C-heavy molasses, raising it from ₹56.28 per liter to ₹57.97 per liter. This marks the first price revision since the 2022-23 ethanol supply year.

For the 2024-25 ethanol supply year, the government has maintained ethanol prices for B-heavy molasses and sugarcane juice-based ethanol at ₹60.73 and ₹65.61 per liter, respectively. The decision was taken by the Cabinet Committee on Economic Affairs, which also revised the ethanol blending target in petrol, reducing the 20% blending goal from 2030 to 2025-26. Public sector oil marketing companies aim to achieve an 18% ethanol blend in the current ethanol supply year.

Following these announcements, shares of sugar and ethanol companies, including EID-Parry, Shri Renuka Sugars, Balrampur Chini Mills, and Triveni Engineering, saw gains of up to 4.5% on the BSE Sensex.

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