New Delhi, Dec 7 (PTI) Ethanol supply to oil marketingcompanies for blending with petrol will rise 71 per cent in2017-18 season to touch record 113 crore litre, helping sugarmills to earn Rs 4,500 crore revenue, according to ISMA.
Indian Sugar Mills Association (ISMA) said around 66crore litre of ethanol was lifted by OMCs (oil marketingcompanies) for the ethanol blending programme in 2016-17season (December–November). The previous record was 111 crorelitre in 2015-16.
ISMA attributed the jump in ethanol supply during 2017-18to improvement in ethanol procurement price by almost 5 percent over last year and increase in sugarcane availabilitygiving more molasses production.
"Out of 155 crore litre of bids submitted by sugarcompanies and ethanol manufacturers, 113 crore litre havebeen finalised for supply during 2017-18 season," ISMA said ina statement.
Tenders were floated by OMCs, inviting bids from sugarmills and ethanol manufacturers for supply of ethanol.
"At an ex-distillery procurement price of Rs 40.85 perlitre and procurement of the finalised quantity of 113 crorelitre, the revenue realisation during 2017-18 by sugarindustry/ethanol suppliers would be over Rs 4,500 crore," ISMAsaid, adding this will help in making cane price payment.
Sugar companies and ethanol manufacturers submitted bidsfor a total quantity of 155 crore litre, the highest everquantity offered by sugar mills and ethanol manufacturers.
ISMA said 313 crore litre of ethanol is required for 10per cent blending across the country. The offer of 155 crorelitre was sufficient for 5 per cent blending.
"Since the bids for several oil company depots were morethan the required quantity of the depot for 10 per centblending therein, proportionate quantities have been acceptedby the OMCs.
"Accordingly, out of 155 crore litre of bids submittedby sugar companies and ethanol manufacturers, 113 crore litrehave been finalised for supply during 2017-18 season," thestatement said.
The OMCs might float a second round of tender for morequantities, ISMA hoped.
Out of the 113 crore litre finalised by OMCs, the largestquantity will be supplied by sugar companies and ethanolmanufacturers in Uttar Pradesh at 44.3 crore litre, followedby Maharashtra at 40.3 crore litre.
As per the finalised quantities, the ethanol blendingwith petrol percentages will be excellent in UP at 9.6 percent, followed by Maharashtra at 8.6 per cent and Bihar at 7per cent during this season.
Sugar production of India, the world's second largestproducer, is estimated to rise at 25.1 million tonne in the2017-18 marketing year as against 20.2 million tonne in theprevious marketing year ended September. PTI MJHANU.
This is unedited, unformatted feed from the Press Trust of India wire.