The Indian Sugar Mills Association (ISMA) on Thursday said the Ethanol interest subvention scheme is receiving a positive response.

In an interview to CNBC-TV18, Abinash Verma, director-general, said, "Ethanol price increase of Rs 3-3.5 per liter is massive for the sugar industry. The increase is mainly because of the increase in sugar price and the sugarcane price. Therefore, I expect the supply of ethanol from 165-170 crore liter in the current season, it should be going up to over 300 crore liter next year."

"Today's decision of increasing ethanol prices despite crude oil prices coming down in the international market is an important signal to the investor that the government is serious about this programme and even if the crude oil prices come down or the petrol prices are not as high, the government will continue to incentivise ethanol production in India," Verma said.

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(Edited by : Jomy Jos Pullokaran)