India may blacklist ethanol makers on failure to supply to OMCs

The Indian government, which has stepped up efforts for the blending of ethanol in a 5% proportion with petrol, has threatened to blacklist ethanol manufacturers if they fail to supply the commodity to oil marketing companies (OMCs). Food and Agriculture Minister Sharad Pawar has asked the ethanol producers not to dilly-dally over the supply and soon enter into an arrangement with the OMCs at Rs27 per liter (US$0.59). Pawar’s warning comes at a time when a large number of ethanol manufacturers, especially cooperative sugar mills, are reluctant to supply, on the grounds that this would incur loss in the first year at the proposed procurement price of Rs27 per liter. (January 5, 2010)