Ethanol producers in Maharashtra commit 50% of output to OMCs

The Ethanol Manufacturers Association in Maharashtra, India, has decided to set aside 50% of alcohol produced in the state to supply oil marketing companies (OMCs) for blending with petrol. The amount of ethanol to be supplied to OMCs is 304.2 million liters, which will be priced at Rs27 per liter. The association believes that OMCs will require a total of 1,044.5 million liters of ethanol between September 1, 2010 and August 31, 2011 for blending petrol with 5% ethanol. Ethanol manufacturers have urged OMCs to reduce the deposit fee from 10% of the contract price to 1%. (August 31, 2010)