New Delhi, Oct. 18 -- State-run oil marketing companies (OMCs) have excluded ethanol produced from sugarcane juice, sugar syrup and B-heavy molasses from their latest procurement tender for the 2026-27 supply year, as the government seeks to preserve domestic sugar supplies while maintaining its nationwide ethanol-blending programme.

The tender, issued by Bharat Petroleum Corporation Ltd (BPCL) on October 16 on behalf of OMCs, seeks bids for approximately 11 billion litres of ethanol for the supply year running from November 2026 to October 2027. The procurement is intended to meet the requirement of blending 20% ethanol with petrol.

The tender has also reduced the incentive for maize-based ethanol, lowering the procurement price to Rs....