ethanol

India Changes Ethanol Policy as Sugar Supply Concerns Grow

Summary:
India has excluded sugar-based ethanol from its 2026–27 procurement tender, redirecting demand toward alternative feedstocks such as maize and rice. The move aims to protect domestic sugar supplies while maintaining the country’s ethanol-blending programme.

Key Points:

- Oil marketing companies are seeking around 11 billion litres of ethanol for the 2026–27 supply year.

- Sugarcane juice, sugar syrup and B-heavy molasses are excluded from the latest tender.

- The procurement price for maize-based ethanol has been reduced from ₹71.86 to ₹68.86 per litre.

- Grain-based feedstocks will play a greater role in meeting India’s petrol-blending requirements.

Market Insight:
The policy shift could affect demand for maize, sugar availability and ethanol producers’ margins. Its impact on crude oil imports will depend on feedstock supply, production capacity and whether India can maintain its blending targets.

Key Takeaway:
India is balancing food security with energy independence. Watch agricultural commodity prices and ethanol production costs for the next market signals.

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