Ethanol manufacturers bat for Rs 40 per litre

Last Updated: Fri, Dec 07, 2012 07:42 hrs

pEthanol manufacturers have welcomed the Centre&rsquos decision on five per cent mandatory blending with petrol but with riders They have demanded a payment of Rs 40 per litre considering the current rate of alcohol of Rs 37 a litre and Rs 5500 to Rs 6000 a tonne of molasses Besides ethanol manufacturers want consistency in procurement from the oil marketing companies OMCs The Ethanol Manufacturers Association of India has conveyed to OMCs that they would be able to supply 10166 million mn litre by end-October next yearppVijaysinh Mohite-Patil president of the association told Business Standard &ldquoThe all-India ethanol production capacity is 1620 mn litre of which Maharashtra has maximum with 928 mn litre According to the government&rsquos decision at the all-India level total requirement of ethanol up to October 2013 would be 10166 mn litre This is doable However we want OMCs to pay Rs 40 per litre We have been repeatedly pursuing the matter of the rise in ethanol procurement prices with OMCs&rdquo During 2011-12 ethanol producers had incurred a loss of Rs 5 a litre as the production cost had increased to Rs 32 a litre against the procurement price of Rs 27 a litreppMohite-Patil said there has been a stiff rise in the prices of alcohol and molasses in Maharashtra in particular due to the fall in sugarcane production following drought conditions &ldquoIt won&rsquot be possible for ethanol producers not only in Maharashtra but also in other states in such circumstances to supply ethanol at Rs 27 a litre especially when the cost of ethanol production has surged to Rs 3650 to 37 a litre Therefore there is a need for OMCs to pay Rs 40 a litre&rdquo he added Mohite-Patil recalled that about 35 ethanol producers had shown their intention to supply 482 mn litres during 2012-13 at Rs 37 a litreppOMCs had forwarded its letter recommending ethanol producers&rsquo demand to the Cabinet Committee on Economic Affairs An OMC official who did not want to be named admitted that all OMCs would jointly review the Centre&rsquos five per cent ethanol blending programme and decide upon the future course of action &ldquoThe government&rsquos decision is in the right direction There were hiccups in the past but the programme will be implemented as several issues have been addressed OMCs will jointly review the Centre&rsquos decision and issue the tender if required The price will be quoted in the tender&rdquo the official informedp

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