Sugar Mills Earn Rs 4,500 crore from Ethanol Sale

Indian Sugar Mills Association (ISMA) said around 66 crore litre of ethanol was lifted by OMCs (oil marketing companies) for blending the ethanol with petrol in 2016-17 season (December November). The previous record was 111 crore litre in 2015-16. However there is a 71 per cent rise in 2017-18 season, it will touch record 113 crore litre, which will help sugar mills to earn Rs 4,500 crore in revenues.

ISMA attributed the jump in ethanol supply during 2017-18 to improvement in ethanol procurement price by almost 5 per cent over last year and increase in sugarcane availability giving more molasses production. Out of 155 crore litre of bids submitted by sugar companies and ethanol manufacturers, 113 crore litre have been finalised for supply during 2017-18 season.

At an ex-distillery procurement price of Rs 40.85 per litre and procurement of the finalised quantity of 113 crore litre, the revenue realisation during 2017-18 by sugar industry/ethanol suppliers would be over Rs 4,500 crore which will help in making cane price payments to farmers.

Out of the 113 crore litre finalised by OMCs, the largest quantity will be supplied by sugar companies and ethanol manufacturers in Uttar Pradesh at 44.3 crore litre, followed by Maharashtra at 40.3 crore litre.

As per the finalised quantities, the ethanol blending with petrol percentages will be excellent in UP at 9.6 per cent, followed by Maharashtra at 8.6 per cent and Bihar at 7 per cent during this season.