Indian minister pushing for sugar and oil to work better together on ethanol

In India, the Minister of Petroleum & Natural Gas Dr. M. Veerappa Moily directed PSU Oil Marketing Companies (OMCs), at a meeting of CMDs and Directors (Mktg) of OMCs and ISMA, to make all efforts for expediting delivery of already procured ethanol. He also asked them to expeditiously procure an additional quantity of ethanol through fresh tenders to meet the requirement of 5 per cent mandatory Ethanol Blended Petrol (EBP) programme. The Minister had called the meeting of OMCs and Indian Sugar Mills Association (ISMA) to expedite procurement and the delivery of ethanol for the EBP programme as per CCEA decision taken in a meeting held on 22.11.2012.

The Minister observed that against a requirement of 1 billion liters ethanol per year, the OMCs have so far finalized procurement of around 400 million liters of ethanol for next twelve months. To meet the balance requirement, OMCs are planning to float another tender in July for the procurement of ethanol.

During the meeting, ISMA suggested that OMCs could procure the finalized quantity of 400 million liters entirely in the next 3-4 months and fresh fender may be floated for the requirement of ethanol coinciding with next sugar season which starts from October 2013. The supply from new tender could be from the month of November 2013.