Private sugar companies got a double blow, what is this exclusive news
The private sugar companies of the country have suffered a double blow. According to exclusive news from sources, cooperative mills will be given priority in the purchase of ethanol by oil marketing companies. This means that it is possible that the purchase of ethanol from sugar mills may be less this season. Along with this, the prices being considered by sugar mills for the increase in ethanol prices are less than the demand of sugar mills. This means that private sugar mills may suffer a double blow of low demand for ethanol and less than expected increase in prices. Today, mixed business is being seen in sugar companies, out of which the number of sugar companies registering a decline is more.
What is this exclusive information
According to the information received from sources, now cooperative mills will get priority in ethanol purchase. That is, oil companies will deal with cooperative mills first. Oil companies have put this new condition in their tender document. According to the information received, IOC, BPCL, HPCL and MRPL have issued tenders to buy 88 crore liters of ethanol for the sugar season of 2024-25 in which this new condition has been added. According to the condition, cooperative sugar mills will get priority in this time’s purchase. Earlier, priority was given to those companies with which oil marketing companies had long term supply agreements.
Along with this, sugar mills had demanded to increase ethanol prices. Companies were demanding an increase of Rs 2 to 2.5 per liter. However, now an increase of Rs 1 to 1.5 per liter is being considered, which is less than the demand of the companies.
