Covid-19 lockdown impacts sugar mills as OMCs reduce ethanol offtake

With petrol and diesel demand falling, OMCs are already dealing with excess supply of the biofuel; ISMA writes to them to reallocate ethanol to deficient depots for fuel mixing

Domestic sugar mills are facing impediments in supplying ethanol to the oil marketing companies (OMC) for mixing in fuel, since the demand for petrol and diesel has come down drastically following coronavirus lockdown.

Due to the dip in demand for vehicular fuel, several OMC depots are witnessing slower petrol offtake with the result that the mills are unable to supply ethanol, a sugar by-product, owing to the paucity of storage and mixing space with such depots. In past few quarters sugar mills were investing in a big way as a measure of diversification of product base.

Since, the ethanol requisition