India’s ethanol tender excludes sugar and molasses amid low crop

New Delhi, Oct 17 – The government has directed public fuel companies to refrain from purchasing ethanol that originates from sugar, cane juice or molasses, aiming to stabilize sugar market prices after a damp monsoon season.

A joint tender released by Indian Oil, BPCL, HPCL, Numaligarh and Mangalore Refinery seeks roughly 1,100 crore litres of ethanol, expressly omitting any proposals for ethanol sourced from B‑heavy molasses, sugar syrup, cane juice or refined sugar.

India, the second‑largest global sugar maker, recorded a decline in cane output this year due to the weakest monsoon in over a decade, linked to an El Niño episode.

Eligible ethanol can now be produced from C‑heavy molasses, damaged grain stocks, additional rice procured from the Food Corporation of India, corn and other feedstocks permitted under the National Bio‑fuel Policy.

The ministry also granted sugar mills permission to sell up to 1,000 metric tonnes of sugar produced in October 2026 during October and November 2026, beyond their normal monthly release quota.