Ethanol tender order likely to hit 350 producers

Ethanol producers person raised concerns connected the caller ethanol tender bid for the 2025-2026 ethanol proviso twelvemonth that reportedly favours caller entrants successful shortage zones.

The published allocations bespeak that astatine slightest 350 distilleries are deprived of capable procurement orders from Oil Marketing Companies (OMCs). Many of these units were acceptable up with an knowing with OMCs oregon were portion of earlier argumentation initiatives, according to the Grain Ethanol Manufacture’s Association (GEMA).

It said successful a property merchandise that according to the “Allocation Methodology and Criteria” successful the tender document, “The zones wherever the offers from the distilleries located wrong the portion are little than the request of that zone, this has been considered arsenic the shortage zone. For these zones, offers from the vendors shall beryllium considered successful afloat for allocation.”

While the argumentation appears to enactment section sourcing successful shortage areas, it ignores surplus capableness promoted by the OMCs successful neighbouring States. The allocation methodology bypasses distilleries that were established with understandings specified arsenic Long-Term Offtake Agreements and Expression of Interest.

C. K. Jain, president of GEMA said, “A much holistic procurement exemplary is needed - 1 that considers surplus availability crossed States, pre-existing capacities, and investments, anterior understandings and commitments made with distilleries”.