Sugar derived ethanol prices hiked by upto Rs 1.47/ltr.
News: The government has announced an increase in ethanol prices. B-heavy ethanol prices would increase by Rs.1.47/ liter from Rs.57.61 / liter to Rs.59.08 / liter. C-Heavy ethanol prices would increase from Rs.45.69 / liter to |46.66/ liter. Sugarcane juice ethanol prices would increase from Rs.62.65 / liter to Rs.63.45 / litre.
View: The increase in ethanol prices would boost profitability of sugar companies. It will also encourage sugar millers to divert more sugarcane towards producing ethanol which in turn would help in reducing the excess sugar inventories in the system & keep domestic sugar prices firm.