AIDA Newsletter April 2013: Coverage on Ethanol ... - Globus Spirits

Ethanol l
..
L;LI
Oil Marketing Firms Fbat Global
Tender for Ethanol Impom
-
The ~ulalic sector oil marbthg mmpmie
:bl
(QYCa) 'have opknsd tenders for iraport of
ethanol. They hope the imported product Whelp
them meet the shortfall in domestic supplies, ,W
for thq mqndatory 5 par apt Wdiqg .with petral.
- ' TWC em as the dWnestic su$ar milts,'
financial tssewmnt Only aftw these pr
Ai&M bM far the tehders floatdd by Oms nt of he rnolassks.
in January, eageffy await orders from them to
start ~Rplies. While the OMCs require about 105
crare .litres of ethanol for blending,. the sugar $&~&img 40 )perhdde: md?arbd dowe,
indusky has committed to supply 55 crore litms B ~ I ~ augwr W
in the current sugar year - ending September.
To ma!& up W.gap, the OMCs decided to go in
for global tenders, which opened on Tuesday,
Some factories in Maiharastitra have
an official said.
reportedly expohed ceflpin >qpntitigr of,
MANDATORY B-
riolask &j e European (miba'b ~&lefewd.
The Government, gn January
Prr lhm wmt 4@bml
that the manatojr 5 per cent Blending of ethanol
with petrol was to be in place by June 30. "TrTough
the OMCs'dsme out wifh tmders fuf domestic
ethanol some time in the third week of January,
the tendering process is not yet complete, and
orders are yet to be placed. >. .. . !.
As the cu17errt sugarcane c @.i. 2B-3-S#8p
1 ' 3 ,
2012-13 entered the I'ast 'pha , ., .
plaeing of arders b)r the mC$ has left tAe millers .I , I .f
wdnied. The indin Sugar Milts Association
recentty wmte to Petroteurn Min'rSte~ M.- ~raooa
&ppl!iies
t ,t'
Msily, seeking hi's ihtqvention in spedding up
the t&R!Mrlg process. €f$gp$pe- Faced with molasses storage issues, the
, susa~ industry has ssccght InbrveMibn of
Meanwhile, theaoib wmpanies say they fdlow
Pedmkiurrr ~n~ V My'in $@ledid$
C i

-A
--
dering process of oil mark&
at 105 crore litres.
companies.
About half of the estimated 250 crore litreg
The Indian Sugar Mills Association in a letter produced is used* for production of potable
p.:- * . a &.
f.:tjtlAl;
to the Petroleum Ministw has' -&C;l/fi 'to alcaa,, 1,-
:[-.#: *t,+ . .-, 1 .4b.. '
a$#- the O W to finalse. the B at-the A*.y ,
SUP~ENTARY TENDER
earliest so that the fact~ries eouM
T--m-=x.
supplies. &&fL~Gw. - Since Wid'W1 trig fir# @hr of &-tender
-7.7.
-
f he ~ov&irn~ent,'dn January 2, had notified
com@tWe alld M F M ~ S *MA , 'urged 'th&
the mandatory five per cent blending of ethanol
-@ ~b~%-tip~wtth a suppt6mentarjrfender. '
\MSth petrol b be achieved by Jum 30.
TWtblaji'th &rid& fiwhafisath3n has also ~ed-thd
'l"h60ktCs had floated'tendersin January for factories to commit their molasses supplies to
whh 'fhe'sugai millers had submitted their bids other uses like oatt1e'fee.d and qxoduction of -.
by January 28.
industria *!lhg, mw. , . ,
However, the delay' in finalisation of tenders
in .'Ibhhr8shtr8' have
by OMCs ha
left the miltms wied as the report* ex@HW 'mWh of motas8ers
swraam - oMmg - enters tW hst phase of the to-tf~a EwWdii~ Man for c&fS M.
2012-13 OR.
@I. 13-3-13)
CO#IC~~TIEN~
EP-V"?.r
-7-
,mMns* t-. sib PUT
"Due to the delay, the indust
a8le td supplf even one litre of ethanol in, the
Some ?Has'
P- --
Sugar at 4-Month High on Brazil
c"r&&$&&oti. The d&y' has not only cieated
Eth*l swita :
s ,issum as oyer 80 per certt'of the
- Sugar climbed to a four-month high in London
has hn+wadmed: PISO
on specul&on that millers in Brazil, the world's
-.f)ls: cash dfbwm.90r the $aid
leading prod~cer,will make more ethanol at the
'9-> a,-,, -,
expense of the sweetener just as port..
he. industry has bo far produced about 8.q congesbqn threqtens to delay exports. Cocoa
mitliontonnes of moYsires this eaio". For every rose. . .
100 kg of sugar prodirced, about 45 ki of
Sug?routppt in ,$epzil1s mtre sodh, the
qiSa@w.k ggewated as a by-product, ISMA
mainqP$bp rqlion. ,may.be little changed from
says. So, far, the country has produced 19.5
last year even as th& cane crop rises becawu
million tonnes of sugar in the current season.
.-,,.., L!?~,;I. producers aie set to make more ethanol,
g-

sweetener when the hawe& &arts in
'Based M'current ecanomics, producers
should favour Bthanol production through June
1 ," Christina McGlorre-Hahn, an analyst at
~eutsche Bank, said i a.report e-mailed today,
recommending buying front-menth raw sugar
futures. 'Vessel line- ups are further delaying
soybeans from leaving the country."
"Weire vety seriaus about timpkment'hg the
ethanol blendhg programme, but we+ have fo
follow cwtahr pmmmes as well;" pdf~oleum
minister Veewappa Mty said at the I&&
Exchrumge ptcgrrmm.
AC
0 7 7 7
The sugar-cane crop in the centre south may
be 580 million to 600' millton tonne this Year,
Dbutschb Bank es2iftrateU: That compares with
532 mitliavl fbrrneayear eartier. Sugar output
maybe as lo* as 34 minion tonne if taxes on
ethanol are reduced, prompting millers to make
more of the biofuel, the bank said. Output will be
at most 36 million tons, it said. A reduction or
partial removal of the ethanol tax may prompt
producers to maximise hydrous ethanol
I
production in duly to August instead of shifting
toward swr, McGloneHahn said.
(F. E. 9-3- 13)
4
pullnni
- E w Blending Set to-Miss J m
'::Dsadllne on Tardy Work by QMQ ,.
1. -4
.- .
3 -7
v&r"hhent's plan to imptement the
blending of ethanol with petrol at a 5:95 ratio by
June is likely to come a cropper, with oil
marketing companies (OMCs) yet to finalise the
list of suppliers of the cane by-product. The
sugar industry that produces most of the ethanol
has now expressed its inability to fully meet
requirement of the OMCs, saying an
unnecessary delay in finalising the tenders by
the OMCs - especially when 70 % of cane has
been crushed so far this season - and stringent
conditions incorporated in the supply agreement
have forced it to divert supplies to avoid a
storage, disaster.
a
On ~&n;ber 22, the cabinet ~ommi&e oll.v,%
Economic Affairs (CCEA) had decided to link the
Ewiththenr~rketrate~~~i "'
attreotivtrc~~r producers, amd diree~e&~lhe
ministry. to 'tm~diately"RI.~ a I, ,
gazm nMoationl for &.Ma to irplplema-&e
programme from Decem-br 1. Prior to the
decisien, OHCS ~useci, to fibat tendem to
ethanol st a ~prbvieional- price of ~ 2 pw 7 litre-, :4
whih padmem said \~lll?e atleast 25% lower*fH%ln
the mad& rate.
The blending programme was fjmt.appryd
by the CCEA way back in 2008 to reduce pollj&io'na
-v6 '
but cbuldnot be im$emented fl"\ly'despite bejnb
dir~qi'mai& due to th= absence of a hx=d
6rliildi"ng f;ir6uh for ethanol. ~i~ni~icantl~, the
g6b~fikksAiirget of 20% m8n&tory eihml
b1e'ndhb%h6'6dro1' by 2dlj $'iif set 10. be
mis& EbnIs'idi'riing that ink 2 3 states hav6 ,so
far implemented the prograinme since 2008,
altho~h, Island*.& 4hm htf the targeted
level of 5%. . .
,, -
6epite th& '&&AS decisi:n, the petroleum
ministry issued the notification only in January
and asked the OMCs to implement the 5%
blending programme by June 30. More-over,
although the last date of submission of bids was
fixed at January 28, the price bids were opened
only on February 15, a delay of 18 days.
Meanwhile, molasses, from which ethanol is
produced, have piled up with producers, as canecrushing
for the current season started in mid-
November and peaked in December.
Consequently ethanol producers diverted
I '
APRIL, <strong>2013</strong>

swpkbstQWc- . imhding ethansrt pi- @Wiiwebfhan *€?-a
p~rtabb ab&l mabm and wati%ed spirit
ewtprers, sugw h#udry ~~ mid.
@.far, 70% of the smson'.g. earn hem been
crushed and 7.5 million ktmaf
pmduced, but a supply contra@ with 9M.Q is
t
elusive, thdy a&ied. *
, a >t
' ,
- . , ,I 6 1 '. :
; =m(a~mwl
~Ktfe!, sugar
piw&rm#s" WmwS, 'mh
,in the ten$ats
sw#lipr&. Jqfs 4 $ptyi@ the, ,fact that extise
sms, lw~ert5-m de~,r+i~a/p is&@ odlr tqth
mis~sled ~ I~;~LII ~ W.to B w g." not to m~.supp~iq~, ~ipyis1
~@IIw~@ pr&ss- br the flb6-r the sf difficulii ... I ,inc