Maha mills pass on ethanol supply to OMCs because of payment terms

In India, cooperative sugar mills in Maharashtra say that one of the main challenges of supplying the oil marketing companies with ethanol, despite being the largest producing state in the country, is the fact that OMCs pay with 60 day terms yet mills must pay farmers on a daily basis. The mills can’t afford to finance the cash flow from their already meager margins, so prefer to not supply the OMCs.