EnergyIMPROVEDeployed
India-wide
OMCs told to stop using sugar-based feedstocks for ethanol in ESY 2026-27 tender
18 Oct 2026
The government directed oil marketing companies (OMCs) to reduce sugar diversion for ethanol production to zero for the 2026-27 ethanol supply year (November 2026–October 2027). OMCs said their latest ESY 2026-27 tender therefore excludes bids for ethanol made from sugarcane juice, sugar, sugar syrup and B-heavy molasses, and instead invites bids for 1,100 crore litres from alternative feedstocks such as C-heavy molasses, damaged food grains, surplus FCI rice, maize and other permitted sources.
Why it matters
This shifts the ethanol procurement mix away from sugar-based inputs, aiming to reduce pressure on domestic sugar availability and prices while keeping ethanol supply through alternative feedstocks.
Oil marketing companies (OMCs)