Centre Halts Sugar-Based Ethanol Buying From November 1
Govt stops OMCs from buying ethanol made from cane juice, sugar and B-heavy molasses from November 1 as a weak monsoon hits sugar output. Full details here.
Key Highlights
- Procurement halted: The Centre has directed state-owned fuel retailers to stop buying ethanol made from sugarcane juice, sugar, sugar syrup and B-Heavy molasses.
- Effective November 1: The change applies from the new ethanol supply year starting November 1.
- 11 billion litres sought: IOCL, BPCL, HPCL, Numaligarh Refinery and MRPL have floated a joint tender for nearly 11 billion litres of ethanol.
- Grains and C-heavy molasses allowed: Suppliers can offer ethanol from C-heavy molasses, damaged food grains, surplus FCI rice, corn and other permitted feedstocks.
- Extra sugar sales: Mills can sell sugar produced in October 2026 during October and November, over and above regular monthly quotas.
India’s ethanol story has hit a speed bump, and this time the reason is the weather. With a weak monsoon denting sugarcane output, the Centre has directed state-owned fuel retailers to stop procuring ethanol made from sugar and key sugarcane-based feedstocks, in a move aimed at keeping sugar prices in check.
What the Tender Says
The direction will take effect from the new supply year starting November 1, according to the tender document. Public sector refiners Indian Oil Corp Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL), Numaligarh Refinery Ltd and Mangalore Refinery and Petrochemicals Ltd have issued a joint tender seeking nearly 11 billion litres of ethanol for the year, citing the new government directions.
“No offers have been sought for ethanol produced from sugarcane juice, sugar, sugar syrup and B-Heavy molasses in this quantity bid tender,” the document states.
