Ethanol blending in India has hit over 7.2% in the first four months of this year — the first time it has reached this level.
This puts the country on course to meet the target of 10% blending by 2022.
In states such as Goa, Karnataka, Maharashtra, Gujarat, Uttar Pradesh, Haryana, Punjab, Delhi, Uttarakhand, and Himachal Pradesh 5% to 10% ethanol is being blended with petrol.
But sugar industry businesses said blending could have been more in the first four months of this year, but for some strategic errors by oil marking companies (OMC) in estimating the storage capacity. Mills are now being compelled to supply ethanol to depots far from their production units.
OMCs have asked for 4.57 billion litres for 2020-21. Of this, sugar companies have finalised bids for 3.25 billion litres. Against this, around 2.98 billion litres of ethanol has been contracted.
Of this 1 billion litres (around 33.5%) has been supplied, while the rest is in the process of being delivered.
Around 770 million litres has been produced from B-heavy molasses and sugarcane juice, which will lead to a shortfall of 800,000 tonnes of surplus sugar.
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