Oil Marketing Companies (OMCs) have allocated approximately 837 crore liters of ethanol for Ethanol Supply Year (ESY) 2024-25 – Cycle 1, in response to offers totaling 970 crore liters from manufacturers nationwide. OMCs had previously issued tenders for the procurement of 916 crore liters of ethanol for this supply year.

Within the allocation, maize comprises the largest proportion at 51.52% (around 431.1 crore liters), followed by sugarcane juice at 22.56% (approximately 188.7 crore liters), B Heavy Molasses at 13.61% (around 113.9 crore liters), damaged food grains at 11.22% (approximately 93.8 crore liters), and C Heavy Molasses at 1.09% (about 9.15 crore liters).

OMCs are anticipated to release additional tenders to fulfill the requirement of 916 crore liters.

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The government is actively advancing the Ethanol Blended with Petrol (EBP) Programme, which allows OMCs to sell petrol blended with ethanol. In September, the ethanol blending rate in petrol reached 15.90%, while the cumulative blending from November 2023 to September 2024 stood at 13.80%. The government aims for a 20% blending target by 2025 and is optimistic about achieving it.

India’s ethanol production capacity has grown significantly, now reaching 1,648 crore liters. The government is hopeful that this increasing capacity will satisfy the domestic demand for ethanol. However, to meet the 20% blending target, around 1,016 crore liters of ethanol will be necessary, amounting to a total of 1,350 crore liters when considering other uses. By 2025, it is projected that an ethanol production capacity of about 1,700 crore liters will be required, assuming plants operate at 80% efficiency.

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