New Delhi, Oct. 21 -- The Indian Sugar & Bio-Energy Manufacturers' Association (ISMA) has welcomed the exclusion of ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from the latest procurement tender issued by state-run oil marketing companies (OMCs), saying the move will help safeguard domestic sugar supplies.

The tender, issued by Bharat Petroleum Corporation Ltd (BPCL) on behalf of OMCs on October 16, seeks around 11 billion litres of ethanol for the 2026-27 supply year, beginning November, to support the government's 20 per cent ethanol-blending target for petrol.

Under the tender, C-heavy molasses-based ethanol remains eligible, allowing sugar mills to continue supplying ethanol without diverting recoverable suga...