Oil firms need 40% more ethanol than sugar mills' installed capacity

The gap is expected to be met by non-sugarcane sources like wheat and corn

The quantity of ethanol sugar companies offered in the first tender for the 2019-20 marketing season was lower than what oil marketing companies (OMCs) had sought, thanks to a production drop and prospects of better prices from other sources. But, even if they had offered their full capacity, they would not have met the need, as OMCs’ original requirement itself exceeded the installed capacity of sugar mills by 40 per cent. While the oil companies placed tenders for 5.11 billion litres of ethanol in 2019-20, sugar mills have a total installed capacity, from all sources, of only 3.55 billion litres.