State-run oil marketing companies have barred ethanol made from sugarcane juice, sugar syrup and B-heavy molasses from their latest procurement tender for the 2026-27 supply year for blending in petrol, as the government seeks to protect domestic sugar supplies while sustaining its nationwide petrol-blending programme.

The tender, issued on October 16 by Bharat Petroleum Corporation Ltd (BPCL), seeks bids for around 11 billion litres of ethanol for the supply year beginning November to meet the requirement of 20 per cent ethanol in petrol. It also cuts the incentive for maize-based ethanol, lowering the procurement price to R68.86 per litre from Rs 71.86.