Oil Marketing Companies (OMCs) have allocated approximately 93 crore liters of ethanol, out of the around 100 crore liters offered by manufacturers across the country, for Cycle 2 of Q4 for the Ethanol Supply Year (ESY) 2024-25. OMCs had initially invited tenders for the supply of around 88 crore liters of ethanol for ESY 2024-25.
In this allocation, maize accounts for the largest share at 58.16% (around 54.34 crore liters), followed by B Heavy Molasses at 19.68% (around 18.39 crore liters), damaged food grains at 14.57% (around 13.61 crore liters), sugarcane juice at 7.30% (around 6.83 crore liters), and C Heavy Molasses at 0.29% (around 0.27 crore liters).
In Cycle 1, OMCs allocated approximately 837 crore liters of ethanol, against a invited bid of 916 crore liters for ESY 2024-25, while the total offered quantity was around 970 crore liters. With this, the total allocation (cycle 1 and cycle 2) so far now stands at around 930 crore liters.
The government is actively implementing the Ethanol Blended with Petrol (EBP) Programme, which allows OMCs to sell petrol blended with ethanol. During ESY 2023-24, the cumulative ethanol blending in petrol reached 14.6%, and for the current ESY 2024-25, ethanol blending in petrol is expected to increase to 18%.
The government has set a target of 20% ethanol blending by ESY 2025-26 and is confident of achieving the same. However, to meet this target, around 1,016 crore liters of ethanol will be required, totaling 1,350 crore liters when accounting for other uses.
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