New Delhi, Jan. 30 -- In a move that could reshape India's ethanol industry, the government on Wednesday raised the price of ethanol derived from C-Heavy Molasses (CHM) by Rs 1.69 per litre to Rs 57.97 per litre.

However, ethanol prices derived from B-Heavy Molasses (BHM) and Sugarcane Juice (SCJ) remain unchanged for the second consecutive year at Rs 60.73 per litre and Rs 65.60 per litre, respectively.

This decision, according to a report by Systematix Institutional Equities, highlights a government preference for CHM and grain-based ethanol over BHM and SCJ as feedstocks.

The price revision is expected to boost margins for distilleries utilizing CHM, while companies relying on BHM and SCJ could continue to face margin pressures.

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