India, Oct. 17 -- The Centre has directed state-owned oil companies to stop procuring ethanol made from sugarcane juice, sugar, sugar syrup and B-Heavy molasses from the supply year beginning November 1, 2026. The move aims to protect domestic sugar availability and moderate prices amid concerns over lower sugarcane output following a weak monsoon.

Key Highlights Sugar-based ethanol procurement will be halted under the latest government directions from November 1, 2026. Five public sector oil companies have jointly sought nearly 11 billion litres of ethanol for the new supply year. Suppliers can offer ethanol made from C-heavy molasses, damaged food grains, surplus FCI rice, corn and other permitted feedstocks. Sugar mills have been all...