Context:
ISMA proposes to hike the subsidy to ₹35,000 crore to increase sugarcane ethanol capacity by 20-25% by 2030-31.
Key Findings:
- The ISMA has requested bringing down the GST on flex-fuel vehicles and differential pricing on ethanol.
- The suggestions include revision of minimum sale price for sugar, fresh pricing of new ethanol for supply year 2024-25, and reduction in falling sugar prices.
What is Ethanol blending?
- It is the process of mixing ethanol with gasoline to reduce the use of fossil fuels.
What is ethanol?
- Ethanol is a renewable biofuel that’s a byproduct of processing sugarcane, rice husk, or maize. It’s also known as ethyl alcohol.
