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Indian Refiners Plan to Buy 1 Billion Liters Ethanol From Sugar Mills

By Pratik Parija and Prabudatta Mishra -

India’s oil refiners agreed to buy 1 billion liters of ethanol from sugar producers for adding to gasoline, according to a government official.

The refiners, who require 860 million liters annually to achieve the 5 percent blend mandated by the government, will issue supply orders on Sept. 6, Apurva Chandra, joint secretary at the oil ministry, told reporters in New Delhi.

The refiners will pay mills an interim price of 27 rupees a liter until the government decides on the final rate, Chandra said at a sugar conference.

To contact the reporter on this story: Pratik Parija in New Delhi at pparija@bloomberg.net

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