Overview
- A joint quantity-bid tender dated Oct. 16 from five state-run oil firms forbids procurement of ethanol made from sugarcane juice, sugar, sugar syrup and B‑heavy molasses for the 2026-27 supply year that runs Nov. 1, 2026 to Oct. 31, 2027.
- The tender invites offers for roughly 1,100 crore litres (11 billion litres) of denatured anhydrous ethanol and limits eligible feedstocks to C‑heavy molasses, maize, damaged food grains, surplus Food Corporation of India rice and other National Policy on Biofuels sources.
- The document sets feedstock-specific basic rates for procurement, for example maize at ₹66.07 per litre plus a ₹2.79 incentive, damaged food grains at ₹64 per litre, surplus FCI rice at ₹60.32 per litre and C‑heavy molasses at ₹57.97 per litre, with transport charges and GST extra.
- First-quarter allocations for the new supply year remain subject to pending court proceedings over OMC allocation rules, and the companies reserve the right to revise, reduce or cancel allocations if courts so order.
- Officials said the change responds to weak monsoon and El Niño-related shortfalls that tightened sugarcane output in key states, and the shift toward grain- and residue-based ethanol will likely affect farmers, mill revenues and demand for corn and rice during the year.