New Delhi: Ethanol supply to oil marketing companies for blending with petrol will rise 71 per cent in 2017-18 season to touch record 113 crore litre, helping sugar mills to earn Rs 4,500 crore revenue, according to ISMA.
Indian Sugar Mills Association (ISMA) said around 66 crore litre of ethanol was lifted by OMCs (oil marketing companies) for the ethanol blending programme in 2016-17 season (December November). The previous record was 111 crore litre in 2015-16.
ISMA attributed the jump in ethanol supply during 2017-18 to improvement in ethanol procurement price by almost 5 per cent over last year and increase in sugarcane availability giving more molasses production.
"Out of 155 crore litre of bids submitted by sugar companies and ethanol manufacturers, 113 crore litre have been finalised for supply during 2017-18 season," ISMA said in a statement.
Tenders were floated by OMCs, inviting bids from sugar mills and ethanol manufacturers for supply of ethanol.
"At an ex-distillery procurement price of Rs 40.85 per litre and procurement of the finalised quantity of 113 crore litre, the revenue realisation during 2017-18 by sugar industry/ethanol suppliers would be over Rs 4,500 crore," ISMA said, adding this will help in making cane price payment.