Indian companies offer 1 billion liters of ethanol to oil marketing companies
Fifty-two companies from nine States in India have offered to supply 1 billion liters (280.3 million gallons) of ethanol to the country's oil marketing companies for five per cent blending with gasoline.
The oil marketing companies had floated tenders and received offers from companies in Uttar Pradesh, Delhi, Bihar, Jharkhand, Goa, Maharashtra (partial), Tamil Nadu, Andhra Pradesh (partial) and Karnataka. Earlier, the Government had notified supply of ethanol-blended petrol in 20 States and four Union Territories. They are to be delivered at the oil marketing companies' depots-terminals for three years with an option for a two-year extension on mutual consent.
The top suppliers are: Shree Renuka Sugars with 217 million liters (20.84%), Bajaj Hindustan group 99 million liters (10%) and Balrampur Chini Group 44 million liters (4.5%). The ex-factory price for the biofuel will be 21.50 rupiah per liter (€0.37/liter, US$1.89/gallon) with State taxes being borne by the oil marketing companies.
India is the largest producer of sugar in the world. In terms of sugarcane production, India and Brazil are almost equally placed. The annual projected growth rate in the area under sugarcane at 1.5% per annum has doubled during the last five years. This is because it is considered to be an assured cash crop with good returns to the farmers vis-a-vis other competing crops.
The Indian sugar industry employs millions of Indian rural families, especially in the North-Central (Uttar Pradesh) and the South-Western parts of the subcontinent (map, click to enlarge), where agro-climatic conditions are such that high and continuous yields are guaranteed. The rise of the ethanol industry is a boon for these households, since increased raw materials prices have taken the industry out of a decade-long glut.
To meet the 5% ethanol mandate, India's oil marketing companies will require 565 million litres annually or about 1.7 billion litres during the tender period of three years. However, the current response meets about 70 per cent of this required quantity:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: India ::
"The shortfall can be easily met. We are in the process of stepping up ethanol production. Our total ethanol production will reach 110 million litres by May from 60 million litres and is to be enhanced further. Similarly, other sugar companies are also planning to up their production capacities," says Mr Narenda Murkumbi, Managing Director of Shree Renuka Sugars, the largest supplier. And "though our factories are in Karnataka we have bagged orders for Maharashtra, Andhra Pradesh, Kerala and Goa," he added.
Early this month, the Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, had said that tenders for other States and locations were being finalised.
In 2005, the public sector oil marketing companies, led by Indian Oil Corporation, had signed an MoU with Indian Sugar Mills Association for supply of ethanol to implement the ethanol blended petrol programme.
Apart from the ethanol programme, recent Government initiatives appear to be pushing up sugar scrips on the bourses.
For the week ended March 30, Sakthi Sugars gained 58.49% to 100.80 rupiah, Shree Renuka Sugars went up 18.47% to 467 rupiah, Bajaj Hindustan jumped 15.66% to 194 rupiah and Oudh Sugars posted a 12.23% gain to 65.15 rupiah.
More information:
Ethanol India: A sugar industry perspective on ethanol production.
The oil marketing companies had floated tenders and received offers from companies in Uttar Pradesh, Delhi, Bihar, Jharkhand, Goa, Maharashtra (partial), Tamil Nadu, Andhra Pradesh (partial) and Karnataka. Earlier, the Government had notified supply of ethanol-blended petrol in 20 States and four Union Territories. They are to be delivered at the oil marketing companies' depots-terminals for three years with an option for a two-year extension on mutual consent.
The top suppliers are: Shree Renuka Sugars with 217 million liters (20.84%), Bajaj Hindustan group 99 million liters (10%) and Balrampur Chini Group 44 million liters (4.5%). The ex-factory price for the biofuel will be 21.50 rupiah per liter (€0.37/liter, US$1.89/gallon) with State taxes being borne by the oil marketing companies.
India is the largest producer of sugar in the world. In terms of sugarcane production, India and Brazil are almost equally placed. The annual projected growth rate in the area under sugarcane at 1.5% per annum has doubled during the last five years. This is because it is considered to be an assured cash crop with good returns to the farmers vis-a-vis other competing crops.
The Indian sugar industry employs millions of Indian rural families, especially in the North-Central (Uttar Pradesh) and the South-Western parts of the subcontinent (map, click to enlarge), where agro-climatic conditions are such that high and continuous yields are guaranteed. The rise of the ethanol industry is a boon for these households, since increased raw materials prices have taken the industry out of a decade-long glut.
To meet the 5% ethanol mandate, India's oil marketing companies will require 565 million litres annually or about 1.7 billion litres during the tender period of three years. However, the current response meets about 70 per cent of this required quantity:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: India ::
"The shortfall can be easily met. We are in the process of stepping up ethanol production. Our total ethanol production will reach 110 million litres by May from 60 million litres and is to be enhanced further. Similarly, other sugar companies are also planning to up their production capacities," says Mr Narenda Murkumbi, Managing Director of Shree Renuka Sugars, the largest supplier. And "though our factories are in Karnataka we have bagged orders for Maharashtra, Andhra Pradesh, Kerala and Goa," he added.
Early this month, the Minister of State for Petroleum and Natural Gas, Mr Dinsha Patel, had said that tenders for other States and locations were being finalised.
In 2005, the public sector oil marketing companies, led by Indian Oil Corporation, had signed an MoU with Indian Sugar Mills Association for supply of ethanol to implement the ethanol blended petrol programme.
Apart from the ethanol programme, recent Government initiatives appear to be pushing up sugar scrips on the bourses.
For the week ended March 30, Sakthi Sugars gained 58.49% to 100.80 rupiah, Shree Renuka Sugars went up 18.47% to 467 rupiah, Bajaj Hindustan jumped 15.66% to 194 rupiah and Oudh Sugars posted a 12.23% gain to 65.15 rupiah.
More information:
Ethanol India: A sugar industry perspective on ethanol production.
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