India excludes sugarcane-based ethanol in 2026-27 OMC tender

17 Oct 2026, 11:41 am IST·2 sources·High coverage confidence

In short

India’s oil marketing companies asked for about 1,100 crore litres of ethanol for the 2026-27 supply year. They left out ethanol made from sugarcane juice, sugar, sugar syrup and B-heavy molasses after a government directive to cut sugar diversion for ethanol.

This matters for fuel suppliers, sugar producers, and the ethanol market. The report does not say how much supply or pricing will change.

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Publisher's headline: “India bars sugarcane juice, syrup-based ethanol in 2026-27 tender; OMCs seek 1,100 crore litres”

What this touches

Oil marketing companiesEnergyCommoditiesEnergyCommoditiesGovernment

NONEPrice reaction still being measured

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Evidence status Cross-reportedCoverage confidence HighIndependent domains 1

Only one publisher domain is currently linked. Treat details and causal claims as provisional until a primary or independent second source is available.

Sources used for this explanation: CNBC TV18 Market, CNBC TV18 Business

What the reporting says

India’s oil marketing companies have invited bids for around 1,100 crore litres of ethanol for the 2026-27 supply year, while offers made from sugarcane juice, sugar, sugar syrup and B-heavy molasses are excluded. The move follows a government directive to reduce sugar diversion for ethanol, but the summary does not specify the directive’s full terms or timing. The immediate consequence is a narrower supplier mix for the tender.

Why it matters

India’s oil marketing companies have issued a large ethanol tender for 2026-27, seeking around 1,100 crore litres. According to the summary, ethanol from sugarcane juice, sugar, sugar syrup and B-heavy molasses is excluded after a government directive aimed at reducing sugar diversion. The immediate effect is on ethanol sourcing and the sugar sector, but pricing and allocation details are not stated.

India excludes sugarcane-based ethanol in 2026-27 OMC tender

In short

What this touches

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