OMCs prioritise cooperatives for ethanol, boosting their economic clout
In a recent decision, Oil Marketing Companies (OMCs) prioritized cooperative sugar mills over private companies for the supply of ethanol in the 2024-25 season. This move reflects the increasing influence of cooperatives, especially since the establishment of the Ministry of Cooperation in 2021. The decision benefits cooperative mills, which produced nearly 30% of India’s sugar in the 2023-24 season, but may pose challenges for private millers. The government’s focus on cooperatives is reshaping India’s economic landscape.
In a landmark move a few weeks earlier, Oil Marketing Companies (OMCs) decided to give sugar cooperatives preference over private companies in the supply of ethanol for their latest tender of 0.88 billion litres in the 2024-25 supply year that started in November.
The decision has gladdened the hearts of the cooperative sugar mills, who produced almost 30 per cent of the around 32 million tonnes (net) of sugar in 2023-24 season, but could be somewhat disadvantageous for private millers.
More importantly, the OMCs’ decision is also indicative of the growing clout of cooperatives in the economy.
Much credit for bringing cooperatives into the forefront of policy making in India goes to the recently-formed Ministry of Cooperation in 2021 with Home Minister Amit Shah in charge. Ever since he took over the ministry there has been a flurry of activity in the cooperative sector, leading to growing awareness about their work and vital role in economic growth.
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Source : Business Standard
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