India halts sugarcane-based ethanol procurement to protect sugar supplies

October 20, 2026 |

In India, the India Today newspaper reports India has directed state-run oil marketing companies to stop procuring ethanol made from sugarcane juice, sugar syrup and B-heavy molasses for the 2026–27 supply year, beginning in November. The measure aims to preserve domestic sugar supplies and contain prices amid concerns about weaker production following poor rainfall in key growing regions. Bharat Petroleum issued a tender seeking approximately 11 billion liters of ethanol, with procurement instead focused on alternative feedstocks such as maize and surplus rice. The government has also reduced the incentive for maize-based ethanol, signaling a significant shift in feedstock policy while seeking to maintain its E20 gasoline-blending program.

Tags: , ,

Category: Policy

Thank you for visting the Digest.

}