30 August 2012 09:04 [Source: ICIS news]
It has been difficult to procure sufficient ethanol to run its etac plants, and Somaiya will make a decision to adjust its output level in the coming weeks, should ethanol availability remain limited, the source added.
The company’s 30,000 tonne/year unit at Mahad and 100,000 tonne/year plant at Sakarwadi are running at full rates currently, the source said.
Ethanol, typically made from sugar molasses in
Several Indian etac makers said that they expect to see a further increase in the cost of ethanol in September, following a 10-15% hike this month.
Domestic ethanol prices in
Mounting ethanol costs prompted producers to implement a price increase of Rs2-3/kg for domestic etac to Rs53-55/kg EXW (ex-works) for August.
Below-average rainfall during this year’s monsoon has partly caused a hike in sugar and therefore ethanol prices. Lower distillery operating rates during the annual monsoon season have contributed to curb the supply of ethanol.
However, the ethanol supply tightness may not ease substantially with crushing and production resuming in October/November, because the likelihood of a poor harvest has prompted ethanol suppliers to limit their sales volumes, a producer added.
Other etac manufacturers in
($1 = Rs55.68)
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