OMCs receive more offers than requirement in cycle 3 of Q2 and Q3 for ethanol supplies during ESY 2024-25
Oil Marketing Companies (OMCs) invited bids for 124 crore liters of ethanol for Q2 and Q3 of ESY 2024-25, receiving 164 crore liters in offers—159 crore from FCI rice and 5 crore from C-heavy molasses. The government reduced FCI rice prices by ₹550/quintal to ₹2,250 and increased CHM ethanol prices to ₹57.97/litre.
Recently, Oil Marketing Companies (OMCs) have invited bids for the supply of around 124 crore litres of Denatured Anhydrous Ethanol for Q2 and Q3 (Cycle 3) of Ethnaol Supply Year (ESY) 2024-25, sourced from C-heavy molasses (CHM) and surplus rice from FCI. The response exceeded the required quantity with over 164 crore liters of offers submitted by the manufacturers across the country.
As per reports, 159 crore liters are from FCI rice and 5 crore liters are from C heavy molasses. In Q2, the received offer is around 86 crore liters, whereas in Q3, the received offer is around 77 crore liters.
Recently, in a major relief to grain-based ethanol producers, the government reduced the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) by Rs. 550 per quintal to Rs. 2,250. This move will help inch closer to the 20% ethanol blending target. Government also increased the C Heavy Molasses price to Rs. 57.97 per litre. The earlier CHM price was Rs 56.28.
Earlier, the total allocation (cycle 1 and cycle 2) was around 930 crore liters in the ongoing ESY 2024-25.
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Source : Chinimandi
