News about ethanol

State-run oil marketing companies (OMCs) have excluded ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from their tender for the 2026-27 supply year, seeking to preserve domestic sugar supplies amid poor rainfall in Maharashtra and Karnataka. The tender, issued by BPCL on October 16, seeks about 11 billion litres of ethanol for November 2026 to October 2027 to support 20% ethanol blending in petrol. The procurement price for maize-based ethanol has been lowered to 68.86 rupees per litre from 71.86, and its incentive cut to 2.79 rupees from 5.79 rupees per litre. The shift is likely to raise the role of grain-based ethanol and C-heavy molasses, but the lower maize incentive could affect producer returns.