Mumbai: India has directed oil marketing companies to cut sugar diversion for ethanol production to zero in 2026/27, excluding ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from their latest tender, according to a tender issued on Friday.
India has relied for years on surplus sugar to meet its ethanol-blending targets, but the exclusion of sugar-based feedstocks underscores the growing tension between cutting oil imports and protecting domestic sugar supplies, as poor rainfall threatens output and pushes prices to record highs.
