BPCL tender bars sugar-based ethanol for 2026-27

Bharat Petroleum Corporation Ltd. issued a tender on October 16 that sets sugar diversion for ethanol at zero and excludes several sugar-based feedstocks from oil companies’ 2026-27 procurement. The tender seeks about 11 billion litres for the supply year running from November 2026 through October 2027, while reducing the maize-based ethanol price to Rs 68.86 per litre from Rs 71.86. The tender, issued on behalf of oil marketing companies, says the Government of India directed that sugar diversion for ethanol be reduced to zero for the supply year. It seeks no offers for ethanol made from sugarcane juice, sugar or sugar syrup, or B-heavy molasses. C-heavy molasses remains eligible, alongside maize, broken rice and surplus rice procured by the Food Corporation of India. The maize rate includes a reported incentive of Rs 2.79 per litre, down from Rs 5.79, according to the tender terms. The change lowers the procurement price by Rs 3 per litre compared with the previous rate. Other listed rates include Rs 57.97 per litre for ethanol from C-heavy molasses, Rs 64 for damaged food grains and Rs 60.32 for surplus FCI rice. The tender’s total requirement is about 11 billion litres. It...