No sugar diversion for ethanol production: Govt to OMCs
Executive Brief • Key Highlights
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- ✓The government directed oil marketing companies to stop producing ethanol from sugarcane juice, sugar, sugar syrup, and B-Heavy molasses for the 2026-27 supply year.
- ✓OMCs said, "Government of India has issued directions that sugar diversion for ethanol be reduced to zero." Producers must now use other feedstocks like maize.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Amidst expected low sugar output and high domestic retail prices, the government has directed oil marketing companies (OMCs) to stop producing ethanol from sugarcane Juice, sugar, sugar syrup and B-Heavy molasses (BHM).
"Government of India (GoI) has issued directions that sugar diversion for ethanol be reduced to zero for ESY 2026-27. Thus, no offers have been sought for Ethanol produced from Sugarcane Juice/Sugar/Sugar Syrup and B-Heavy molasses in this Quantity Bid Tender," the OMCs said in the tender issued for the upcoming ethanol supply year (ESY).
Accordingly, ethanol produced from different feedstocks namely C-Heavy molasses (CHM), damaged food grains, surplus rice procured from FCI, maize, other feedstocks as per National Policy on Biofuels (NPB) have been provided as separate categories in the quantity bid form, the tender added.
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