Ethanol supplies have experienced a drop in November, primarily due to a shortage of feedstocks, according to the Grain Ethanol Manufacturers Association (GEMA). The ethanol body said that the average monthly ethanol supply to Oil Marketing Companies (OMCs) in November has declined, attributing the reduction to delayed sugarcane crushing and laggard procurement by the Food Corporation of India (FCI).
OMCs have allocated around 837 crore litres of ethanol against 970 crore litres offered by manufacturers for the Ethanol Supply Year (ESY) 2024-25. OMCs had invited tenders for the supply of 916 crore litres of ethanol for ESY 2024-25.
The Indian government has set a target to achieve ethanol blending in petrol, but ethanol producers are raising concerns about several challenges that need to be addressed in order to achieve this goal smoothly. In a recent presentation to Union Home Minister Amit Shah, GEMA highlighted issues such as viable pricing for ethanol and the availability of feedstock for the Ethanol Supply Year (ESY) 2024-25 and beyond. The association also proposed a single rate of Rs. 73.40 per litre for all grain-based ethanol to alleviate the difficulties faced by manufacturers.
