India looking to cut tax on molasses to encourage mills to supply E10

September 24, 2015 |

In India, the government is considering raising the base price for ethanol by a few cents per liter in an effort to secure enough supplies for the new E10 policy set to start Oct. 1. Mills are not interested in supplying the ethanol blend because they are getting better returns for selling into the industrial market. However the government is exploring the waiver of a tax on molasses that would lower the production price and in turn boost returns for ethanol producers. An estimated 100,000 metric tons of sugar will be diverted to ethanol production with current prices but waiving the tax on molasses could boost that figure to as much as 400,000 tons.

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Category: Policy

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