📷 Image: Wikimedia Commons / Nikhil B
Business
Oil Marketing Companies Exclude Sugar‑Based Ethanol from 2026‑27 Tender, Reduce Maize Incentive
✍️ Business Standard
🗓 19 Oct 2026, 05:17 AM
👁 13
India’s oil marketing companies have announced that sugar‑derived ethanol will not be eligible for the 2026‑27 fuel‑blending tender and that the subsidy for maize‑based ethanol will be lowered.
Oil marketing companies (OMCs) overseeing India’s fuel supply have issued a notice that ethanol produced from sugarcane will be excluded from the upcoming 2026‑27 blending tender. The decision comes as the sector revises its ethanol procurement strategy for the next fiscal cycle.
In addition to barring sugar‑based ethanol, the OMCs have announced a reduction in the incentive offered for maize‑derived ethanol. The move is aimed at recalibrating subsidy levels and aligning the blend composition with current market dynamics.
The exclusion is expected to affect the sugar industry, which has been a major source of ethanol feedstock, while the lowered maize incentive could tighten margins for corn growers and ethanol producers relying on that crop.
Stakeholders are awaiting further clarification on the revised tender specifications, which are slated to be released later this year as the government prepares the next round of ethanol blending targets.
In addition to barring sugar‑based ethanol, the OMCs have announced a reduction in the incentive offered for maize‑derived ethanol. The move is aimed at recalibrating subsidy levels and aligning the blend composition with current market dynamics.
The exclusion is expected to affect the sugar industry, which has been a major source of ethanol feedstock, while the lowered maize incentive could tighten margins for corn growers and ethanol producers relying on that crop.
Stakeholders are awaiting further clarification on the revised tender specifications, which are slated to be released later this year as the government prepares the next round of ethanol blending targets.