Ethanol Tender Order May Impact 350 Distilleries

• Ethanol producers express concern over a recent ethanol tender order favoring new entrants in deficit zones.

• At least 350 distilleries are deprived of adequate procurement orders from Oil Marketing Companies (OMCs).

• Many units were established on understanding with OMCs or were part of earlier policy steps.

• Grain Ethanol Manufacturrers Association (GEMA) states that the allocation method supports local sourcing in deficit areas, disregarding surplus capacity promoted by OMCs in neighboring states.

• The allocation method bypasses distilleries established with understandings such as long-term off-take pacts and expression of interest.

Ethanol distilleries India is important topic for Civil service exam (WBCS).

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