Ethanol supplies have declined in November, primarily due to a shortage of feedstocks, said the Grain Ethanol Manufacturers Association (GEMA). According to the association, the average monthly supply of ethanol to Oil Marketing Companies (OMCs) has decreased in November, with the drop attributed to delayed sugarcane crushing and laggard procurement by the Food Corporation of India (FCI).
OMCs have allocated around 837 crore litres of ethanol for the Ethanol Supply Year (ESY) 2024-25, compared to the 970 crore litres offered by manufacturers. OMCs had tendered for the supply of 916 crore litres of ethanol for the same period.
While the Indian government aims to achieve ethanol blending in petrol, producers have raised concerns about various challenges that need to be addressed to meet this goal effectively. In a recent presentation to Union Home Minister Amit Shah, GEMA highlighted issues such as the need for viable ethanol pricing and sufficient feedstock availability for the ESY 2024-25 and beyond. The association also proposed setting a uniform rate of Rs. 73.40 per litre for all grain-based ethanol to ease the difficulties faced by manufacturers.
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