India's next ethanol purchase tender will not accept any bids using sugar-derived ethanol. This decision has been made by India's government, directing the oil marketing companies owned by the nation to block any use of sugar for ethanol purposes. According to a report by the Reuters, the exclusion applies to ethanol derived from sugarcane juice, sugar, sugar syrups, and B-heavy molasses.
India has made plans to buy 11 billion liters of ethanol for the upcoming financial year beginning in November 2026. The tenders were issued by the Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited.
The three firms intend to buy 11 billion liters of ethanol during the financial year beginning in November 2026. They may receive quotations for ethanol manufactured using corn, crushed rice, and excess FCI (Food Corporation of India) rice. The ethanol made using corn will be sold at reduced prices too. The benefit rate of corn ethanol has been slashed by Rs 3 to Rs 2.79 per liter. As per the data available, the purchase price per liter of ethanol has been decreased from Rs 71.86 to Rs 68.86.
Excess sugar had been playing an important role in the ethanol blending project of India. India uses more sugar than any other nation globally and aims to boost its indigenous production and reduce the cost of sugar. The E20 fuel has become mandatory across India recently. It was brought to reduce pollution levels and decrease the nation's reliance on foreign crude oil. Using sugarcane juice, sugar syrup, and B-heavy molasses for making ethanol can result in a fall in sugar manufacturing.
