The nation blends 11.20% ethanol; updated contracts and allocations are the main focus

The country has effectively attained an ethanol blending rate of 11.20% as of February 4, 2024. The current Ethanol Supply Season began on November 1, 2023, and the revised allotment for ethanol deliveries from (Sugar) molasses-based distilleries is 162 crore liters, down from the earlier allocation of 270 crore liters. Distilleries that use molasses have contracts for 123.52 crore liters, while 76.97 crore liters have been supplied to Oil Marketing Companies (OMCs).

Breaking down the feedstock-based ethanol supplies for (Sugar) molasses-based distilleries, the revised allocation for ethanol from B Heavy molasses is now 115 crore liters, down from the initial allocation of 130 crore liters. Although actual supplies of B Heavy molasses reached 34.45 crore liters, total contracts for the product total 73.93 crore liters.

The initial 136 crore liters of Sugarcane Juice (SCJ) allocation has been reduced to 43 crore liters. With 41.17 crore liters of provided ethanol, the total contracts from SCJ equal to 44.7 crore liters. The allocation of ethanol supplies from C Heavy molasses has not been changed; it is still 4 crore liters, with 1.35 crore liters of supplies now on hand.

Turning our attention to ethanol distilleries based on grains, the allotment stays at 292 crore liters, unaltered. Out of this, the contracted quantity is 146.23 crore liters, and the total supplies amount to 45 crore liters. Damaged Foodgrains (DFG) is currently providing 25.66 crore liters of ethanol, as opposed to the 84.92 crore liters that were contracted. With supply from maize reaching 19.34 crore liters as of the first week of February, compared to a total contracted quantity of 45.97 crore liters, the government has offered policy support to increase ethanol production from maize.

In total, the ethanol supplies from both molasses-based and grain-based distilleries amount to 121.97 crore liters, as against to the total contracted amount of 269.75 crore liters.

Source: Chinimandi