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Oil marketing companies bar sugarcane-based ethanol from the 2026-27 blending tender and cut the maize incentive

State-run oil marketing companies have barred ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from their latest procurement tender for the 2026-27 supply year for blending in petrol. The tender was issued on October 16. The government is seeking to protect domestic sugar supplies while sustaining the nationwide petrol-blending programme, and the tender also cuts the incentive for maize-based ethanol. The move follows 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. The restrictions mark a shift in feedstock sourcing for the ethanol-blended petrol programme, which has used both grain-based and sugarcane-based ethanol to reduce crude oil imports and cut vehicle emissions.

Tender issued: October 16 Supply year: 2026-27
Why it matters for exams: The ethanol blending programme, its feedstocks and the sugar economy are regularly examined.
Kerala PSCUPSCBank
19 October 2026 Source: The Hindu

In plain words

B-heavy molasses B-heavy molasses — An intermediate sugar mill by-product with a higher sugar content, used to make ethanol.

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