Ethanol supply to touch record level in FY18: ISMA NEW RECORD

Ethanol supply to oil marketing companies for blending with petrol will rise 71 per cent in 2017-18 to touch a record 1.13 billion litres, helping sugar mills to earn ~4,500 crore in revenue, according to ISMA.

Indian Sugar Mills Association (ISMA) said around 660 million litres of ethanol was lifted by OMCs (oil marketing companies) for the ethanol blending programme in 2016-17 season (December–November). The previous record was 1.11 billion litres in 2015-16.

ISMA attributed the jump in ethanol supply during 2017-18 to improvement in ethanol procurement price by almost 5 per cent over last year and increase in sugarcane availability giving more molasses production.

"Out of 1,550 million litre of bids submitted by sugar companies and ethanol manufacturers, 1,130 million litre have been finalised for supply during 2017-18 season," ISMA said in a statement.

Tenders were floated by OMCs, inviting bids from sugar mills and ethanol manufacturers for supply of ethanol.

"At an ex-distillery procurement price of ~40.85 per litre and procurement of the finalised quantity of 1,130 million litres, the revenue realisation Ethanol supply to OMCs during sugar seasons ‘13-14 ‘14-15 ‘15-16 ‘16-17‘17-18 during 2017-18 by sugar industry/ethanol suppliers would be over ~4,500 crore," ISMA said, adding this will help in making cane price payment.

Sugar companies and ethanol manufacturers submitted bids for a total quantity of 1,550 million litre, the highest ever quantity offered by sugar mills and ethanol manufacturers.

ISMA said 3,130 million litres of ethanol is required for 10 per cent blending across the country.

"Since the bids for several oil company depots were more than the required quantity of the depot for 10 per cent blending therein, proportionate quantities have been accepted by the OMCs,” the statement said.