Indian ethanol producers sign contracts for 2.3 billion liters to supply blending mandate

In India, against a requirement of 3.30 billion liters of ethanol for 10% ethanol blending in the country, excluding J & K, North Eastern States and island territories, ethanol supply contracts have been signed for 2.37 billion liters for the ethanol supply period 2018-19 (Dec. – Nov).

This is the highest ethanol supply contracts ever.  The best ever achieved was last year when contracts for 1.60 billion liters were signed and 1.50 billion liters of ethanol were supplied in 2017-18 ethanol supply period (Dec. – Nov).  Average all India ethanol blending with petrol achieved last year in 2017-18 was 4.22%.

If all the 2.37 billion liters is successfully blended in the country in the current year, about 7.2% of petrol consumption will get substituted by this environment friendly bio-ethanol.

Out of total contracted ethanol supplies of 2.37 billion liters, 45 million liters of ethanol have been contracted to be manufactured and supplied from ‘B’ heavy molasses and sugarcane juice, amounting to reduction of around 500,000 metric tons of sugar production.  Similarly, 165 million liters of ethanol has been contracted to be manufactured and supplied from damaged food grains, unfit for human consumption.

In the first four months of the contracted supply period i.e from December 1, 2018 to November 30, 2019, the ethanol manufacturers have successfully supplied 750 million liters to various depots of the oil companies across the country.

For the first time, 210 million liters out of the total supply of 750 million liters have been manufactured from ‘B’ heavy molasses/sugarcane juice/damaged food grains.