These are quantity tenders… prices will be announced by Govt.
There is so much of excess capacity that OMCs have got more offer than required.
Sugar companies will face margin pressure if ethanol prices is not increased – as cane FRP has already been increased. Govt. is encouraging the sugar cane companies to change from cane juice to grains (which is even more loss making !!!)
Maize price may come down marginally in Oct/ Nov due to harvest but will be up again by Dec /Jan). Grain distilleries will be in loss if ethanol price not increased – which is not likely as price has already been increased and is much above cane based ethanol. For many grain distilleries there will be no option than to shut down – they will not be able to compete with dual-feed distilleries of sugar companies.
Ethanol industry is headed for a shake up with many plants shutting down.
| Subscribe To Our Free Newsletter |
