India Halts Sugar Diversion for Ethanol in 2026-27 Tender
What Happened
India has directed oil marketing companies to reduce sugar diversion for ethanol to zero for the 2026-27 ethanol supply year. The October 16 tender seeks no ethanol made from sugarcane juice, sugar or sugar syrup, or B-heavy molasses. State-run oil companies instead invited bids for 11 billion litres, including ethanol produced from corn and eligible rice feedstocks.
Key Takeaways
The tender marks a shift from previous years when sugar-based feedstocks contributed to ethanol procurement. Government data shows grains already accounted for roughly three-fourths of India’s ethanol production in 2025-26.