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HomeEthanolAIDA Appeals to IOCL for Relief Amid FCI Rice Stoppage for Ethanol

AIDA Appeals to IOCL for Relief Amid FCI Rice Stoppage for Ethanol

Request to Release PRC Penalty to Premier Alcobev Pvt. Ltd. and Shamanur Sugars Limited

The All India Distillers’ Association (AIDA) has reached out to Indian Oil Corporation Ltd. (IOCL), urging the Oil Marketing Companies (OMCs) to release penalties under the Price Reduction Clause (PRC) and security deposits to Premier Alcobev Pvt. Ltd. and Shamanur Sugars Limited, both affiliated with AIDA. This appeal comes in light of the cessation of FCI rice supplies for ethanol production, causing financial strains on the mentioned companies.

In their communication, AIDA highlighted the contractual provision allowing OMCs to impose penalties under the PRC if supply levels fall below specified thresholds. Premier Alcobev Pvt. Ltd. had previously requested the release of PRC from HPCL due to ethanol supply disruptions caused by FCI rice cancellations in the 2022-23 period.

Shamanur Sugars Limited also faced challenges, necessitating a switch from FCI rice to maize for ethanol production due to supply uncertainties. The company, in its correspondence with BPCL, outlined the increased costs and supply constraints resulting from the FCI rice halt and regional raw material shortages.

This development follows the Government’s decision in July 2023 to halt FCI rice supplies to grain-based distilleries for ethanol, impacting the industry’s supply chain and prompting strategic adjustments to alternative feedstocks.

Sugar Times Team
Sugar Times Teamhttps://www.sugartimes.co.in
The Sugar Times Editorial Team is a group of experienced journalists, analysts, and industry experts dedicated to providing in-depth coverage and insights on the global sugar industry. With years of experience in agriculture, trade, sustainability, and market trends, the team brings a wealth of knowledge and expertise to every article they produce.Focused on delivering accurate, timely, and relevant news, the Sugar Times Editorial Team aims to keep industry professionals, stakeholders, and enthusiasts informed on key developments in sugar production, trade policies, innovations, and sustainable practices. Their collective goal is to help readers navigate the complexities of the sugar sector and stay ahead of emerging trends shaping the future of the industry.You may submit your article on info@sugartimes.co.in if you have valuable contributions for the industry readers.
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