India’s Ethanol Blended Petrol (EBP) Programme is aimed at attaining various outcomes such as reducing import dependency, providing a boost to the agriculture sector, addressing environmental concerns and many more. In the month of October 2022, Oil Marketing Companies (OMCs) received a good response for the invitation to submit an offer of quantities for supply of Denatured Anhydrous Ethanol from feedstocks of Sugarcane Juice, B-Heavy Molasses, C-Heavy Molasses, Damaged Food Grains, Surplus Food Grains (Surplus Rice sourced from FCI) and maize for the period 01.12.2022 to 30.11.2023
This week, OMCs announced a proposed allocation of around 400 crore liters at different OMCs locations across the country. Sugar mills are expected to divert about 45 lakh tons of sugar towards ethanol production.
The ESY periods would be as under:
ESY Quarter 1 (Q1): December 2022, January 2023 & February 2023
ESY Quarter 2 (Q2): March 2023, April 2023 & May 2023
ESY Quarter 3 (Q3): June 2023, July 2023 & August 2023
ESY Quarter 4 (Q4): September 2023 & October 202
According to marketmen, “An important aspect of this year’s tender has been that, OMCs have entered long term contracts with grain distilleries which have started getting operational in ethanol deficit states and supplies from those distilleries have been given first priority will start their supplies replacing the traditional surplus state producers. This is going to increase transportation cost for sugarcane based distilleries in surplus states like Maharashtra, Karnataka and Uttar Pradesh who are supplying ethanol already bearing negative transportation costs.”
Recently the Central Government redefined the Ethanol Supply Year to 1st November of a year to 31st October of next year from 1st November 2023 onwards. Also, announcement of the ethanol prices for ESY 2022-23 was made as below :
