Ethanol Supply
Oil cos invite bids from distillers for supply of 490 mln ltr ethanol Aug-Oct
This story was originally published at 15:03 IST on 2 July 2025
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NEW DELHI – Oil marketing companies have invited bids from distillers to supply 490 million litres of ethanol during the October quarter of the ethanol supply year 2024-25 (Nov-Oct). Distillers must submit their bids by Jul. 8, according to a tender document released Tuesday. Oil companies buy ethanol to achieve their blending targets.
Bidders are asked to quote ethanol quantities to be supplied in kilo litres against feedstock-wise and quarter-wise requirements of oil marketing companies for Aug-Oct, the tender said. Distillers can commence supply from Aug. 1 for the October quarter.
Distillers are asked to offer only additional quantities for the last quarter of the ethanol supply year, after considering the quantities already accepted by oil companies in previous tenders.
Ethanol produced from a variety of feedstock — sugarcane juice, B-heavy molasses, C-heavy molasses, damaged food grains, surplus rice from Food Corp. of India, and maize – is eligible under the tender. The ethanol will be purchased at the prevailing rates applicable for 2024-25 (Nov-Oct).
Oil companies will buy ethanol made from sugarcane juice at INR 65.61 per litre, from B-heavy molasses at INR 60.73, and that from C-heavy molasses at INR 57.97 per litre. Among grain-based feedstock, ethanol made from damaged food grains is INR 64 per litre, FCI surplus rice INR 58.50, and that from maize is INR 71.86 per litre.
The government has set a target of achieving 20% blending by 2025-26 to reduce dependence on crude oil and promote green mobility. During Nov-May, oil companies bought 5.50 billion litres of ethanol and achieved 18.8% blending. End
Reported by Afra Abubacker
Edited by Nishant Maher
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