India bars sugar-based ethanol in 2026-27 tender, cuts maize incentive
The move comes amid concerns over domestic sugar availability and rising prices after poor rainfall in key sugar-producing States, including Maharashtra and Karnataka, raised the risk of lower output
India has barred sugar-based ethanol from its latest procurement tender for the 2026-27 supply year, lowering its incentive for maize-based ethanol to reduce competition with food supplies. The move reflects concerns over domestic sugar availability and rising prices following poor rainfall in key sugar-producing states. The ethanol-blended petrol program, which relies on both grain-based and sugarcane-based ethanol, aims to reduce crude oil imports and cut vehicle emissions.
However, the restriction on sugar-based feedstocks emphasizes the need for alternative raw materials like maize, broken rice, surplus rice, and C-heavy molasses. The government is balancing energy-security objectives with the need to maintain adequate sugar supplies and contain domestic prices.
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