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The Hindu·4 min read·hard

Ethanol tender sparks feedstock concerns as rice gains ground over maize

M
M. Soundariya Preetha
Ethanol tender sparks feedstock concerns as rice gains ground over maize
✦AI Summary

The latest ethanol procurement tender for 2026-27 has raised concerns among grain-based ethanol producers regarding feedstock pricing and allocation. Industry groups argue the current framework places a disproportionate burden on rice-based feedstocks.

Why it matters

The policy impacts the economic viability of grain-based ethanol production and influences national fuel blending targets.

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Ethanol tender sparks feedstock concerns as rice gains ground over maize left Eco friendly ethanol gasoline blend, concept of ecology, automotive, transport (for illustration) Getty Images Getty Images https://th-i.thgim.com/public/incoming/aakt9m/article71620116.ece/alternates/FREE_1200/iStock-2265290727.jpg Svitlana Pietukhova green fuel nozzle with e20 label inserted into a car gas tank, close up of fueling a vehicle at a gas station, eco friendly ethanol gasoline blend, concept of ecology, automotive, transport. The competing concerns highlight the challenge facing the ethanol procurement framework: balancing the availability and cost of different feedstocks. COIMBATORE The Oil Marketing Companies’ (OMCs) latest ethanol procurement tender for Ethanol Supply Year (ESY) 2026–27 has triggered concerns among grain-based ethanol producers and sections of the sugar industry over feedstock pricing, allocation priorities and the potential implications for the sector.

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