Government directs zero sugar diversion for ethanol in 2026-27 supply year tender

Key facts

• India has directed oil marketing companies to set sugar diversion for ethanol at zero for the 2026-27 supply year, excluding ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from the tender.
• Oil marketing companies invited bids for 11 billion litres of ethanol for the supply year beginning in November, allowing bids for ethanol made from corn, broken rice and surplus rice from the Food Corporation of India.
• The tender was jointly issued by state-run Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp.
• The incentive for corn-based ethanol was cut to 2.79 rupees per litre from 5.79 rupees, lowering the procurement price to 68.86 rupees per litre from 71.86 rupees.
• The government made E20 the nationwide mandatory ethanol-blending standard earlier this year to curb pollution and cut oil imports.