News › Markets  ·  16 Oct 2026, 9:09 PM IST  ·  3 days ago

India sets zero sugar diversion for ethanol in 2026/27 tender

Bias: Neutral 0

In one line — India has instructed oil marketing companies to cease sugar diversion for ethanol production by the year 2026-27. This decision arises amid rising sugar prices and concerns over domestic sugar supply due to poor rainfall

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Source: Economic Times · AI-summarised by Anadi · Updated 16 Oct 2026, 9:36 PM IST

What Happened

India has instructed oil marketing companies to cease sugar diversion for ethanol production by the year 2026-27. This decision arises amid rising sugar prices and concerns over domestic sugar supply due to poor rainfall. Ethanol from sugarcane juice and other sugar-based feedstocks will not be included in the latest tender. The government aims to boost domestic sugar production and curb oil imports as part of its policies.