Sugar mills seek third ethanol supply tender from govt-owned OMCs

Sugar mills have urged government-owned oil marketing companies (OMCs) to float the third tender for ethanol procurement because of the expectations of excess production of the green fuel on additional quantity of cane being crushed this season.

The excess production is a major issue as mills had planned to expand ethanol production. With Uttar Pradesh being the largest sugar producer, mills in the state took the lead in urging for another tender.

In a letter addressed to three government-owned OMCs — Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL), the apex industry body, Indian Sugar Mills Association