After sugar, now Oil Marketing Companies (OMCs) have taken a big decision on the supply of ethanol made from surplus rice of Food Corporation of India (FCI). OMCs have amended the rules of ethanol supply and kept it within the cap of 30%. According to the new instructions of the government and the recently released tender amendments (Corrigendum), distilleries will now be able to supply a maximum of 30% of their total ethanol offering from FCI’s surplus rice.
This step has been taken based on the instructions of the Ministry of Petroleum and Natural Gas (MoPNG) and the Department of Food and Public Distribution (DFPD). Under this, allocation of 72 lakh metric tons (LMT) surplus rice received from FCI i.e. a total of 324 crore liters of ethanol has been decided for Ethanol Blending Program (EBP).
What was decided in the new arrangement?
Quarterly Limit: Oil companies have fixed the total limit of ethanol produced from FCI’s surplus rice in the first three quarters (Q1, Q2 and Q3) of the ethanol supply year (ESY 2026-27) at 108 crore liters for each quarter.
Cut Proportion: As per the prescribed instructions, if the total offers of all the bidders exceed this quarterly limit (108 crore litres), then the offers of each distillery will be reduced proportionately.
The objective of this new arrangement is to ensure that the allocation of FCI’s surplus rice among the distilleries is done in a fair and balanced manner, so that the set targets can be met on time. With this change, ethanol manufacturers will have to do their supply planning according to the new rules, because proposals exceeding the prescribed limit will not be considered.
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Source: ndtv.in
