India Bars Sugar-Based Ethanol In New Tender And Cuts Maize Incentive
· Business · The Hindu, NDTV, Times of India
State-run oil marketing companies have excluded sugarcane juice, sugar syrup, and B-heavy molasses from procurement tenders for the 2026-27 supply year to protect domestic sugar supplies. Bharat Petroleum Corporation Limited issued the tender on behalf of OMCs on October 16, seeking approximately 11 billion litres of ethanol to maintain the 20% petrol-blending mandate. The policy shift comes in response to poor rainfall in key sugar-producing states like Maharashtra and Karnataka, which raised concerns over lower output and rising domestic prices. Additionally, the tender reduces the procurement price incentive for maize-based ethanol from ₹71.86 to ₹68.86 per litre, cutting the direct incentive component to ₹2.79 per litre. Bids remain open for ethanol produced from maize, broken rice, FCI surplus rice, and C-heavy molasses.
Why it matters
Sugar mills and grain ethanol producers face shifting revenue streams and altered feedstock economics as India prioritizes domestic food supply security alongside green fuel mandates.
Read the original report — The Hindu
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