New Delhi, Jan. 30 -- Governments decision of Wednesday to raise prices of ethanol produced from only C-Heavy Molasses (CHM) suggests a potential reshaping of India's ethanol industry says a report by Systematix Institutional Equities.

The report says a shift in government incentives towards CHM and grain-based ethanol while reducing reliance on BHM and SCJ as feed stocks indicates government preference towards CHM based ethanol.

On Wednesday the union cabinet has raised the price of C-Heavy Molasses (CHM) based ethanol by Rs1.69 per litre to Rs57.97 per litre, while keeping the prices of B-Heavy Molasses (BHM) and Sugarcane Juice (SCJ) based ethanol unchanged at Rs60.73 per litre and Rs65.60 per litre, respectively, for the second cons...