OMCs bar sugar-based ethanol from 2026-27 tender as government sets zero sugar diversion; maize ethanol price cut to ₹68.86 a litre
On 16 October 2026, BPCL, on behalf of oil marketing companies, issued the 2026-27 ethanol tender for about 11 billion litres that excludes ethanol from sugarcane juice, sugar syrup and B-heavy molasses, following a government direction of zero sugar diversion.
Summary
State-run oil marketing companies (OMCs) barred ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from their procurement tender for the 2026-27 ethanol supply year, issued on 16 October 2026 by Bharat Petroleum Corporation Ltd (BPCL) on their behalf. The tender document said the Government of India has directed that sugar diversion for ethanol be reduced to zero for 2026-27. It seeks about 11 billion litres of ethanol to meet the 20% blending (E20) requirement, and cuts the maize-based ethanol procurement price to ₹68.86 per litre from ₹71.86, with the incentive reduced to ₹2.79 from ₹5.79. Bids are allowed for ethanol from maize, broken rice, surplus FCI rice and C-heavy molasses.
Key facts
- Tender issued
- 16 October 2026, by BPCL on behalf of OMCs
- Supply year
- 2026-27 (November 2026 to October 2027)
- Quantity
- About 11 billion litres, for 20% ethanol blending (E20)
- Excluded feedstocks
- Sugarcane juice, sugar/sugar syrup, B-heavy molasses
- Government direction
- Zero sugar diversion for ethanol in 2026-27
- Allowed feedstocks
- Maize, broken rice, surplus FCI rice, C-heavy molasses
- Maize ethanol price
- ₹68.86 per litre (from ₹71.86)
- Maize incentive
- ₹2.79 per litre (from ₹5.79)
Practice MCQs 2 questions
Which of the following feedstocks was ALLOWED in the oil marketing companies' 2026-27 ethanol procurement tender issued in October 2026?
Show answer
Correct answer: C — C-heavy molasses
To what level was the procurement price of maize-based ethanol cut in the 2026-27 tender issued in October 2026?
Show answer
Correct answer: D — ₹68.86 per litre