India’s OMCs throw in the towel and cancel ethanol buy tender

December 2, 2014 |

In India, the oil marketing companies have canceled their buy tenders for 1.2 billion liters of ethanol, saying the falling price of oil has no longer made the ethanol offered by sugar mills viable. When the 1.56 billion liter tender was opened, oil was at $114 a barrel but that has now fallen to $72 per barrel. As mills were not willing to lower the prices offered, and the contracts for 350 million liters were already signed, the rest of the negotiations were cancelled.

 

Category: Policy

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