ESY 2024-25: OMCs allocate around 837 crore litres for ethanol supply; maize holds share of around 51.5 per cent
Oil Marketing Companies (OMCs) have allocated 837 crore liters of ethanol against 970 crore liters of offers for the Ethanol Supply Year (ESY) 2024-25, Cycle 1. Maize dominates the allocation with a 51.52% share. The government, aiming for 20% ethanol blending by 2025, is making progress, with ethanol blending at 15.90% in September. India’s ethanol capacity is now 1,648 crore liters, but further growth is needed to meet future blending and domestic requirements.
Oil Marketing Companies (OMCs) have allocated around 837 crore liters of ethanol against 970 crore liters of offers submitted by manufacturers across the country for Ethanol Supply Year (ESY) 2024-25 – Cycle 1. OMCs had invited tenders for the supply of 916 crore liters of ethanol for ESY 2024-25.
In the given allocation, maize holds the largest share at 51.52 percent (around 431.1 crore liters), followed by sugarcane juice at 22.56 percent (around 188.7 crore liters), B Heavy Molasses at 13.61 percent (around 113.9 crore liters), damaged food grains at 11.22 percent (around 93.8 crore liters), and C Heavy Molasses at 1.09 percent (around 9.15 crore liters).
OMCs are expected to issue more tenders to meet the requirement of 916 crore liters.
The government is actively implementing the Ethanol Blended with Petrol (EBP) Programme, which enables OMCs to sell petrol mixed with ethanol. In September, ethanol blending in petrol reached 15.90 percent, and cumulative ethanol blending from November 2023 to September 2024 touched 13.80 percent. The government has set a target of achieving 20 percent ethanol blending with petrol by 2025 and is confident in reaching this goal.
India’s ethanol production capacity has expanded significantly, now reaching 1,648 crore liters. The government is optimistic that this growing capacity will meet the country’s domestic ethanol needs. However, to achieve the 20% blending target, approximately 1,016 crore liters of ethanol will be required, totaling 1,350 crore liters when accounting for other uses. By 2025, it is estimated that an ethanol production capacity of around 1,700 crore liters will be necessary, assuming plants operate at 80% efficiency.
