Kolhapur: The Western India Sugar Mills Association (WISMA), which represents nearly 100 private sugar mills in Maharashtra, has raised concerns over the procurement policy of oil marketing companies (OMCs) under the government’s ethanol blending programme. The initiative aims to mix ethanol with petrol to reduce the use of fossil fuels, reports The Times of India.
According to WISMA members, OMCs have adopted a procurement system that gives first priority to ethanol from cooperative sugar mills, followed by dedicated ethanol plants. Private sugar mills are considered after that. This practice, introduced last year, was paused after opposition from WISMA and other industry groups. However, it is likely to be reintroduced in the tenders for ethanol supply in 2025-26, members said.
WISMA president B. B. Thombare said private mills, despite producing most of the ethanol, are being sidelined. “There is no fair opportunity in the current ethanol procurement policy. Nearly 75% of ethanol comes from private mills, yet they are placed at the bottom of the priority list. These mills have invested more than ₹15,000 crore to help meet the blending programme target,” he said.
Thombare added that WISMA has written to Petroleum and Natural Gas Minister Hardeep Singh Puri, requesting him to ensure equal treatment for all producers.
Maharashtra, the country’s leading ethanol producer, has an annual production capacity of 315 crore litres. Of this, private sugar mills run 50 distilleries with a combined capacity of 138 crore litres. Cooperative mills operate 46 distilleries producing 112 crore litres, while 40 standalone distilleries contribute 64 crore litres.
A WISMA study also revealed that ethanol supplied by private sugar mills fell from 76% in 2021 to 68% in 2025.
