India’s ethanol procurement policy for the 2026-27 supply year reveals a complex multi-sectoral trade-off between energy transition, fiscal prudence, and agricultural supply security.<\/p>\n
While Oil Marketing Companies (OMCs) have invited bids for a massive\u00a01,100 crore litres\u00a0of ethanol to maintain the nation’s E20 target, the new tender completely excludes high-yield feedstocks, specifically\u00a0sugarcane juice, syrup, and B-heavy molasses.\u00a0To curb food inflation and preserve domestic sugar stocks, the government has mandated a\u00a0zero sugar-diversion clause.<\/p>\n
Fiscal and Cost Implications for OMCs\u00a0<\/p>\n
The strategic shift away from sugarcane-derived feedstocks toward maize introduces severe cost pressures for Oil Marketing Companies (OMCs).\u00a0Banning high-yielding options like sugarcane juice,\u00a0syrup,\u00a0and B-heavy molasses leaves OMCs dependent on lower-yielding C-heavy molasses and grain alternatives.<\/p>\n
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay<\/a><\/p>\n Agricultural and Food Security Pressures\u00a0<\/p>\n Because the poultry industry uses 55-60% of domestic maize,\u00a0diverting more of it to ethanol drives up feed costs\u2014threatening to make everyday food items like eggs and chicken more expensive.\u00a0Meanwhile,\u00a0halting sugar-based ethanol prevents a national sugar shortage (with production projected at 27-28 million tonnes versus a demand of 28.3 million tonnes),\u00a0but it hurts sugar mills that spent heavily on new distillery capacity.<\/p>\n To fix this, policymakers must balance clean energy targets with economic stability.\u00a0This requires better supply chain planning,\u00a0higher-yielding crop varieties,\u00a0and alternative feedstocks.\u00a0<\/p>\n \n Essential Business<\/a> Intelligence,
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\n Practical Personal Finance<\/a> Advice, Daily Fuel<\/a>, Gold<\/a> and Silver<\/a> Prices and Latest<\/a> Stories \u2014 On NDTV Profit.\n <\/p>\n","protected":false},"excerpt":{"rendered":"India’s ethanol procurement policy for the 2026-27 supply year reveals a complex multi-sectoral trade-off between energy transition, fiscal…\n","protected":false},"author":2,"featured_media":656218,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,295235,184,295234,85,46,295236],"class_list":["post-656217","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-e-20","tag-economy","tag-etanol","tag-il","tag-israel","tag-sugar-mill"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/656217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=656217"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/656217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/656218"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=656217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=656217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=656217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}