Ethanol blending to decline this year on lower raw material availability

Sharp decline in cane output to dampen molasses supply

Oil marketing companies’ (OMC) are set to miss their ethanol blending target yet again due to lack of supply of the green fuel from sugar mills.

Initiated in 2013, the ethanol blending programme was started to help sugar mills achieve better economic sense. The government had then set a target of five per cent ethanol blending with petrol in the first year and 10 per cent thereafter. However, OMCs have not been able to achieve the first year’s target of five per cent even in the fourth year.

During the cane crushing season 2015-16, OMCs were to lift 1,300 million litres ethanol