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India's Sugar Industry Will Supply 113 crore litres Ethanol In 2017-18 For EBP

7 Dec 2017 12:40 pm
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MUMBAI (Commoditiescontrol) - India's sugar and ethanol manufacturers are expected to supply 113 crore litres of ethanol to Oil Marketing Companies (OMCs) during 2017-18 (Dec-Nov), under Ethanol Blended Petrol (EBP) Programme, as per Indian Sugar Mills Association (ISMA).

Ethanol Blended Petrol (EBP) Programme was launched by the Government in 2003 under which Oil Marketing Companies (OMCs) required to sell ethanol blended petrol with percentage of ethanol up to 10% during the marketing year.

This programme has promoted by government to increase the use of alternative and environment friendly fuels, also sought to reduce import dependency for energy requirements to save potential foreign exchange and value addition in the economy.

According to ISMA, sugar companies and ethanol manufacturers are estimated to supply 113 crore liters of ethanol to Oil Marketing Companies under Ethanol Blended Petrol Programme

Earlier in last month, the Oil Marketing Companies of the country were floated the tenders for inviting bids from sugar companies and ethanol manufacturers for supply of ethanol, during 1st December 2017 to 30th November 2018.

While, sugar and ethanol producers submitted the bids for the quantity of 155 crore liters, out of which OMCs have been finalized 42 crore litres lesser ethanol. As the total bids of 155 crore liters were more than the required quantity of the depot for 10% blending for several oil company depots, although OMCs finalized 113 crore litres of ethanal for 2017-18.

While OMCs may float a second round of tender for more quantities of ethanol, and also will purchase remaining 42 crore litres.

In last month, the Cabinet Committee on Economic Affairs also has revised up the price of ethanol to Rs. 40.85 per litre for current season, from previous rate of Rs.39 per litre in last season.

In last season i.e. in 2016-17 during 1st December, 2016 to 30th November, 2017, OMCs had lifted around 66 crore litres of ethanol for EBP programme. Which was marginally lower than 2014-15, when the OMCs purchased 67.4 crore litres.

On other hand, with total supplies of 113 crore litres, sugar industry will get revenue of Rs. 4500 crore during current season, with an ex-distillery procurement price of Rs. 40.85 per litre.

This extra revenue will significantly help the sugar industry in making payments of sugarcane price to the farmers on time. And also will help sugar factories to maintain the healthy balance sheets.

(By Commoditiescontrol Bureau: +91-22-40015532)

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