Stories
India Excludes Sugar-Based Ethanol From 2026-27 Tender And Cuts Maize Incentive
N
News18•18-10-2026, 14:00
India Excludes Sugar-Based Ethanol From 2026-27 Tender And Cuts Maize Incentive
- •State-run oil marketing companies have barred ethanol made from sugarcane juice, sugar syrup, and B-heavy molasses from the 2026-27 procurement tender.
- •The government aims to protect domestic sugar supplies and control rising prices following poor rainfall in key producing states like Maharashtra and Karnataka.
- •The latest tender issued by BPCL seeks around 11 billion litres of ethanol to maintain the nationwide 20 per cent petrol-blending target.
- •The procurement price incentive for maize-based ethanol has been lowered from Rs 71.86 to Rs 68.86 per litre.
- •Eligible feedstocks for the new tender include maize, broken rice, FCI surplus rice, and C-heavy molasses.
Key Questions Answered
The Indian government reduced sugar diversion for ethanol to zero to protect domestic sugar supplies, stabilize prices, and offset lower output caused by poor rainfall in major producing states like Maharashtra and Karnataka.
The procurement tender permits bids for ethanol produced from alternative raw materials including maize, broken rice, surplus rice procured by the Food Corporation of India, and C-heavy molasses.
Oil marketing companies lowered the procurement price incentive for maize-based ethanol, reducing the incentive rate to Rs 2.79 per litre from the previous Rs 5.79 per litre.
