India misses ethanol blending target in May

India continues to miss state-set targets to blend ethanol with gasoline, managing only 6.9pc in May, according to preliminary oil ministry data.

Blending was even lower at 4.9pc during December 2019 to May 2020, the first half of the ethanol blending year. India has set a 10pc ethanol blending target by 2022 but lower production of the biofuel has curbed supplies.

Indian state-controlled refiners received 127.4mn litres of ethanol during 1-25 May, higher by 46pc from the 87.3mn l in April, following relaxations to the country's Covid-19 lockdown. The lockdown ends on 30 June but West Bengal state has extended it by another month as India's coronavirus cases continue to rise.

The refiners ordered 1.9bn l under a tender issued for the 2019-20 supply year. Refiners received 757mn l of ethanol until 25 May for the December 2019-November 2020 ethanol supply year.

By S Dinakar