Overview
- Five state‑run oil companies issued a joint quantity tender dated October 16 that seeks roughly 1,100 crore litres (about 11 billion litres) of denatured anhydrous ethanol for the supply year from November 1, 2026 to October 31, 2027.
- The tender excludes ethanol made from sugarcane juice, sugar, sugar syrup and B‑heavy molasses while allowing offers from maize, damaged foodgrains, surplus FCI rice and C‑heavy molasses.
- Procurement rates are published by feedstock, with maize set at a basic rate of ₹66.07 per litre plus a reduced incentive of ₹2.79 per litre and C‑heavy molasses at ₹57.97 per litre, lowering the corn ethanol procurement price to ₹68.86 per litre.
- First‑quarter allocations under the tender remain conditional on ongoing court cases over OMC allocation rules, and the government has cleared extra October sugar sales to help stabilise prices and build buffer stocks.
- The move protects sugar availability ahead of festive demand but shifts demand pressure onto grains and distilleries, which could squeeze margins for some ethanol suppliers and alter corn and rice market dynamics.