pune sugar factories in the state have urged the union government to revise the price of ethanol from rs 27 per litre to rs 35 due to the rise in production cost the maharashtra state federation of cooperative sugar factories ltd sakhar sangh has communicated the demand to the government through a note prepared by it maharashtra has 92 ethanol manufacturing plants with a production capacity of 8858 crore litres the note said however mainly due to lack of demand this capacity has remained unutilized this capacity is enough to meet the requirement of maharashtra and neighbouring states in case 5 or even 10 doping of petrol with ethanol is allowed the oil companies are presently procuring ethanol at rs 27 per litre ajit chaugule managing director of sakhar sangh said the union government had appointed a committee under the chairmanship of soumitra choudhury to finalize the ethanol price it is learnt that the committee has recommended a price of rs 30 per litre considering the prices of molasses and alcohol the production cost of ethanol and international crude prices ethanol manufacturers should get a minimum price of rs 35 per litre we are expecting a decision from the union finance ministry the union government has fixed rs 27 per litre price for ethanol last year but due to rise in demand for molasses and rectified spirit and consequent escalation in production cost ethanol production was stopped and the proposed 5 blending of petrol with ethanol could not happen on a large scale the sangh claimed that ethanol manufacturing will boost the sugar industry as new market is being created for oil and sugar sector there will be more demand for molasses and rectified spirit along with ethanol which will increase the business for sugar factories and can also pay higher rate for sugarcane farmers the sangh has stated in its note