India: Alcohol Industry Wants Say on Ethanol Pricing
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Friday, 03 February 2012 |
The Confederation of Indian Alcoholic Beverage Companies (CIABC), which includes leading liquor players like United Sprits and Radico Khaitan, has raised concerns over the fixed price of ethanol and demanded inclusion in the process of determining prices.
The implementation of ethanol blending (at 5% with petrol) and non-supply of the entire contracted quantity of ethanol by the sugar industry to oil companies has led to artificial scarcity and increased the prices of ethanol/ethyl alcohol. According to CIABC Director-General Pramod Krishna, prices of extra neutral alcohol have risen from R26 a litre in September 2010 to the current R36-37.
The potable alcohol industry contributes R48,000 crore annually to the exchequer, the organisation pointed out, meaning that non-availability of the industry’s main raw material could significantly impact state revenues. Currently, supplies are being made at an ad-hoc price of R27 a litre, as decided by a group of ministers. This price is due for revision according to a quarterly petrol price-linked formula suggested by the Saumitra Chaudhuri committee.
PetrolWorld 03022012
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