Oil marketing companies (OMCs) have invited bids for supply of almost 66 crore litres of ethanol for supply year 2023-2024, which falls between November 1, 2023 and October 31, 2024.
The ethanol can be extracted from sugarcane juice/sugar/sugar syrup, B-heavy molasses, c-heavy molasses, damaged food grains, or maize.
The government had earlier permitted only 17 lakh tonnes of sugar for ethanol production. Sources in the sugar industry said this is above the quantity permitted earlier. The ethanol blending target for the current year is 15%.
“The bids indicate that the suppliers can supply any quantity of ethanol they produce and there is no more restriction,” said Vijay Girase, proprietor of Al Sucrose Corporation. “With indications that there is adequate sugar production in the domestic market and for closing stock, the government has eased the restrictions,” he added.
