In a boost for ethanol production, Oil Marketing Companies (OMCs) are seeking an Expression of Interest (EoI) for conversion of existing allocations of Q2, Q3 and Q4 of the Ethanol Supply Year (ESY) 2024-25 to ethanol from FCI rice.
According to report, this EOI window for feedstock conversion request to FCI Rice is open till 11th February 2025. Vendors can edit and re-submit their requests till the due date. On re-submission, the previous entered quantities will get overwritten and the last submitted entry will be considered as the final input.
This is only an EoI for collating requests for feedstock conversions of existing allocations to FCI rice, as per the report.
The government is leaving no stone unturned to strategically boost ethanol production, which will not only ensure an increase in production but also raise farmers’ incomes.
Recently, in a major relief to grain-based ethanol producers, the government revised the provision for the sale of rice stocks exceeding buffer stocking norms under the Open Market Sale Scheme (Domestic) (OMSS(D)) Policy for the year 2024-25 and reduced the price for distilleries producing ethanol. The government has set the reserve price at Rs 2,250 per quintal (fixed) nationwide for the sale of rice to distilleries for ethanol production. Earlier, this was set at Rs 2,800 per quintal. The reserve price for the sale of rice to ethanol distilleries for ethanol production is fixed for a total quantity not exceeding 24 LMT.
According to industry experts, the EoI for feedstock conversions to FCI rice for allocations in Q2, Q3, and Q4 of ESY 2024-25 reflects the government’s commitment to ethanol blending, and the total quantity of FCI rice is expected to exceed 24 LMT. This measure will ensure fulfillment of demand for agricultural produce and is also a significant step in developing the agricultural economy.
On January 29, OMCs invited bids for the supply of around 124 crore liters of Denatured Anhydrous Ethanol for Q2 and Q3 (Cycle 3) of ESY 2024-25, sourced from C-heavy molasses (CHM) and surplus rice from FCI. The response exceeded the required quantity, with over 164 crore liters of offers submitted by manufacturers across the country. 159 crore liters are from FCI rice and 5 crore liters are from CHM. In Q2 (Cycle 3), the received offer is around 86 crore liters, while in Q3 (Cycle 3), the received offer is around 77 crore liters.
