Ethanol Procurement Tender Sparks Feedstock Pricing Concerns in Sugar Industry
What happened
The latest ethanol procurement tender for Ethanol Supply Year 2026–27, issued by Oil Marketing Companies, has raised concerns regarding feedstock pricing and allocation priorities among the sugar industry and grain-based ethanol producers. The tender sets procurement prices at ₹60.32 a litre for surplus foodgrains and ₹64 a litre for damaged foodgrains. GEMA argued that the tender disproportionately burdens rice-based feedstocks while weakening maize's role as an industrial feedstock.
From thehindu.com
Why it matters
The tender's pricing structure and allocation rules introduce uncertainty into how procurement demand will be distributed across different feedstock categories. Industry estimates suggest that allocation for damaged foodgrains is anticipated to exceed 700 crore litres for the 2026–27 supply year.
From thehindu.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- GEMASpeculative
GEMA could face challenges to the viability of grain ethanol production due to the tender's specific pricing and allocation rules.