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The expected increase in sugarcane cultivation in the sugar season (SS) 2017-18 (December - November) and government’s push on blending ethanol with petrol, the sugar mills and ethanol companies have submitted bids for supplying 155 crore litres ethanol to the oil marketing companies (OMCs). This is the highest ever quantity offered by the sugar companies and ethanol manufacturers, a statement released by Indian Sugar Mills Association (ISMA) has said.
According to ISMA, a total of 313 crore litres is required for 10% blending across the country and, therefore, the offers given were equivalent of replacing 5% of the country’s petrol consumption. Out of 155 crore litres of bids submitted by sugar companies and ethanol manufacturers, 113 crore litres have been finalised for supply during 2017-18 season. In the previous sugar season, in 2016-17 (December – November), a total of around 66 crore litres has been lifted by the OMCs for the programme.
The best ever ethanol supplies were made in 2015-16 sugar season (SS) when 111 crore litres were successfully supplied and blended with petrol. The 113 crore litres finalised now will be even higher to the record of two years back. Further, as per past practice and experience, the OMCs may float a second round of tender for more quantities, ISMA has stated.
At an ex-distillery procurement price of Rs. 40.85 per litre and procurement of the finalised quantity of 113 crore litres, the revenue realisation during 2017-18 by the sugar industry/ethanol suppliers would be over Rs. 4,500 crore. This, in turn, will significantly help the sugar industry in making payments of cane price to the farmers, the sugar mills association has said.
According to the statement, out of 113 crore litres finalised by OMCs, the largest quantity will be supplied by the sugar companies and ethanol manufacturers in Uttar Pradesh to the tune of 44.3 crore litres followed by Maharashtra at 40.3 crore litres. However, UP had offered to give 75.9 crore litres whereas Maharashtra offered to give 50.4 crore litres in their bids meaning thereby that a significant quantity will still be supplied from these two States, whenever a second tender is floated.
As per the finalised quantities, the ethanol blending with petrol percentages will be excellent in UP which should be achieving 9.6%, followed by Maharashtra which should be 8.6% and Bihar which should be achieving 7% during this season, the sugar mills body has estimated.