With the ethanol intake by state-run oil marketing companies (OMCs) not keeping pace with the capacity being built for the production of the bio-fuel, many units may go stranded, with potential implications for the debt contracted by them. The ethanol industry, especially the grain-based ones, is seeking a further hike in the ethanol blending with petrol , from the current level of 20%, and a freeze on new investment in the sector.

According to sources, ethanol manufacturers have submitted bids to supply over 17,760 million litres of the biofuel to the OMCs for the ethanol supply year 2025-26 (ESY) against the tender of 10,500 million litres. Out of total offers, over 4710 million litres is offered from sugarcane based feedstock units and more than 13,040 million litres is offered

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