OMCs Issue Tender for 12.4 Billion Liters of Ethanol, Production from FCI Rice and C Heavy Molasses
Domestic Oil Marketing Companies (OMCs) have issued a tender to procure 12.4 billion liters of ethanol for the Ethanol Supply Year (ESY) 2024-25. This ethanol will be produced from subsidized rice from the Food Corporation of India (FCI) and C Heavy Molasses (CHM). Key Points: The supply will be for February 2025-April 2025 (Q2) and May 2025-July 2025 (Q3). The government has set a maximum limit of 2.4 million tons for FCI rice sales, which will be sold to distilleries under the Ethanol Blended Petrol (EBP) program. OMCs will need 7.086 billion liters of ethanol in Q2 and 5.306 billion liters in Q3. The tender will be valid until July 31, 2025. Contracts So Far: OMCs have contracted a total of 93 billion liters of ethanol so far, which includes: 59.3 billion liters (grain-based ethanol) 19.6 billion liters (sugarcane juice-based ethanol) 13.2 billion liters (B Heavy Molasses) 0.9 billion liters (C Heavy Molasses) Government's Ethanol Blending Target: The Indian government's target is to achieve an 18% ethanol blend in petrol by ESY 2024-25. The country's total ethanol production capacity is 168.3 billion liters, which is sufficient to meet the 20% blending target by October 2026.