OMCs likely to order additional supply of ethanol to distilleries

06-Jun-2025 04:30 PM

New Delhi. Oil marketing companies (OMCs) are expected to place additional orders for ethanol supply to distilleries soon. For the current marketing season of 2024–25 (November–October), a supply allocation of 947 crore liters of ethanol has already been made. Now, the OMCs have decided to increase this quota to 1050 crore liters. An order for the additional quantity of 103 crore liters may be issued shortly, with tenders for 30 crore liters likely to be floated soon.

The ethanol blending program is already in progress, with the government targeting an 18 percent ethanol blend in petrol for the 2024–25 season. The goal is to increase this to 20 percent in the next season. From November 2024 to April 2025, the target of 18.5 percent blending was already achieved. To meet the 20 percent target, approximately 1016 crore liters of ethanol will be required. If the full quantity is procured, the blending target could be met within the current season itself.

Earlier, the Food Corporation of India had allocated 24 lakh tonnes of rice at a subsidized price of Rs 225 per quintal to grain-based distilleries. This quota has now been increased to 52 lakh tonnes. In light of this development, OMCs are being advised to issue orders for an additional 130 crore liters of ethanol instead of the previously planned 50 crore liters.