India's ethanol transition: Can grain-based feedstocks fill the gap left by sugar?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Oil marketing companies issued a tender on October 16 for 11 billion litres of ethanol for the 2026-27 supply year.
- ✓The plan excludes sugarcane juice and syrup to protect sugar stocks.
- ✓Grain-based feedstocks now lead the supply mix, though officials must balance these needs with food security and poultry feed.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
The country can pursue its ethanol-blending ambitions while creating new markets for farmers and building a more resilient domestic bioenergy economy
India's ethanol programme is entering a crucial phase as the country balances its energy-security ambitions with the need to maintain adequate sugar supplies. With lower sugar production expected in the 2026-27 season, the question is no longer simply how much ethanol India needs, but how reliably it can be produced without putting additional pressure on food and agricultural markets.
On October 16, oil marketing companies issued their procurement tender for the 2026-27 supply year, seeking around 11 billion litres of ethanol. The tender excluded ethanol produced from sugarcane juice, sugar syrup and B-heavy molasses, while retaining C-heavy molasses as an eligible feedstock. The procurement price for maize-based ethanol was also reduced from ₹71.86 to ₹68.86 per litre. These changes underline the growing importance of alternative feedstocks in maintaining ethanol supplies while prioritising domestic sugar availability.
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