Low oil prices keep ethanol stocks at the mills despite government push

In India, despite the government’s push for 5% and soon 10% ethanol blending and a floor price established that oil companies must purchase their mandated ethanol purchases at low oil prices are providing too hard of a temptation for OMCs to miss. As a result, mills have hundreds of millions of liters of ethanol on hand with no takers while their cash is tied up in storing the product no one seems to want at the moment. The situation in Uttar Pradesh has gotten so bad that some mills may stop ethanol production all together.