Oil Marketing Companies (OMCs) have today issued indicative revised allocation of sugarcane juice (SCJ) and B-heavy molasses (BHM) based ethanol.
According to the Department of Food and Public Distribution (DFPD) order dated December 15, 2023, OMCs were asked to make revised allocations and placement of revised contracts for each distillery for the supply of sugarcane juice and B heavy molasses-based ethanol within a total diversion of 17 lakh tonnes (LMT) sugar.
In the month of October, 2023, the OMCs had issued a tender for 825 crore litres of ethanol for ESY 2023-24, allocating 265 crore litres from sugar-based feedstocks, including 135 crore litres from sugarcane juice/syrup and 130 crore litres from B-heavy molasses. According to the experts, around 157 crore litres have been reallocated, including around 42 crore litres from SCJ and 115 crore litres from BHM. (This translates to 10 LMT sugar diversion for BHM and around 7 LMT for SCJ).
ChiniMandi had earlier reported expected revised allocation from SCJ and BHM, and the current allocation seems in line with that. Click here to read that news
In a revised allocation order, OMCs have laid down principles for supply for SCJ and BHM based ethanol. (To check table of A, B, C, D, E, F, please refer the link at bottom of the news which specified mill/distillery wise allocation).
SCJ supply principles:
Vendor should not exceed the Total SCJ quantity supplied (as per the revised allocation) to each OMC individually. (A)
In case a vendor has a balance quantity of SCJ for supply in Q1&Q2 to a particular OMC, they can either supply that quantity as SCJ or convert it to BHM keeping the overall sugar diversion intact i.e. BHM Qty. = (SCJ Qty. x 1.875).
In case a vendor has already exceeded the supply of his revised SCJ Allocated Qty. of Q1+Q2 for a particular OMC, no further supplies of SCJ to be undertaken and the differential sugar diversion on account of this excess supply will be deducted from their BHM allocation of Q1+Q2 of that OMC first and if required from Q3/Q4 allocated quantities of SCJ & BHM.
Vendor wise quantity of SCJ Ethanol that has been converted and to be supplied from BHM for Q1 & Q2 has also been mentioned. (B)
For Q3 & Q4 (since the OMC wise allocations has not been published), the vendor wise revised SCJ Allocated Quantity has been mentioned and will be used for arriving at OMC wise – location wise allocations (D). Vendor wise quantity of SCJ Ethanol that has been converted and to be supplied from BHM for Q3 & Q4 has also been mentioned (E)
BHM supply principles
OMC wise – Vendor wise revised allocation of BHM for Q1&Q2 has been tabulated below. Vendor should not exceed the Total BHM quanitty supplied (as per the revised allocation) to each OMC individually. (C)
In case a vendor has already exceeded the supply of his revised BHM Allocated Qty. of Q1+Q2 for a particular OMC, no further supplies of BHM to be undertaken and the differential sugar diversion on account of this excess supply will be deducted from their SCJ allocation of Q1+Q2 of that OMC first and if required from Q3/Q4 allocated quantities of BHM & SCJ.
No Diversion of BHM Revised Allocated Quantities to SCJ will be permitted.
For Q3 & Q4 (since we have not published the OMC wise allocations), the vendor wise revised BHM Allocated Quantity has been mentioned and will be used for arriving at OMC wise – location wise allocations. (F)
Click here to check table (A, B, C, D, E, F) of revised allocation
