
State-run oil marketing companies barred ethanol made from sugarcane juice, sugar syrup, and B-heavy molasses from the procurement tender for the 2026-27 supply year to protect domestic sugar supplies.
The tender issued by BPCL seeks bids for around 11 billion litres of ethanol to meet the requirement of blending 20 per cent ethanol in petrol from November 2026 to October 2027.
The government also reduced the procurement incentive for maize-based ethanol from Rs 71.86 to Rs 68.86 per litre amid concerns over domestic sugar availability and rising prices.