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Informist, Tuesday, Oct. 1, 2024

 

NEW DELHI – Bharat Petroleum Corp Ltd, on behalf of state-owned oil marketing companies, has invited bids for the supply of 9.16 billion litres of ethanol for the upcoming ethanol supply year starting November, according to a tender issued on Thursday. Bidders can quote ethanol supply quantities for one or more quarters before 1100 IST on Oct. 10, the tender said. 

 

Oil companies have estimated their indicative quarter-wise ethanol requirement as 2.34 billion litres for Nov-Jan, 2.21 billion litres for Feb-Apr, 2.31 billion litres for May-Jul, and 2.29 billion litres for Aug-Oct. The total ethanol requirement for the upcoming season is 9.16 billion litres.

 

The allocated quantities for 2024-25 (Nov-Oct) shall be procured as per the prevailing rates of 2023-24 until the government revises rates further, the tender said. 

 

Currently, ethanol made from sugarcane juice is priced at INR 65.61 a litre, B-heavy molasses at INR 60.73 a litre, and C-heavy molasses at INR 56.28 a litre. Ethanol from damaged food grain is priced at INR 64.00 a litre, and maize at INR 71.86 a litre. For the ethanol year 2023-24, the government only increased ethanol prices from C-heavy molasses, as it restricted ethanol production from the other two sugarcane-based feedstocks. It also incentivised ethanol made from maize in 2023-24. 

 

Distilleries have urged the government to increase the rates of ethanol made from molasses-based feedstock in line with the rise in fair and remunerative prices of sugarcane. The Centre fixes the fair and remunerative prices for sugarcane, which are paid by distilleries to farmers.

 

Oil companies purchase ethanol from distilleries to blend the biofuel with petrol and achieve blending targets. To reduce dependence on crude oil and promote green mobility, India has set a target of achieving 15% ethanol blending with petrol in 2023-24 (Nov-Oct) and achieved 13.6% ethanol blending as of Sept. 1, according to the Ministry of Petroleum and Natural Gas. 

 

For the next year, India has set a target of 20% ethanol blending, for which the country needs about 10.16 billion litres of ethanol. End

 

Reported by Afra Abubacker

Edited by Saji George Titus

 

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