Centre Imposes Restrictions on Sugar Based Ethanol

The central government is reportedly planning to restrict the purchase of ethanol produced from sugar and sugarcane-based products amid concerns over sugar availability. According to reports, oil marketing companies will not be allowed to purchase ethanol made from sugar, sugarcane juice, sugar syrup and B-Heavy Molasses during the period from November 1, 2026, to October 31, 2027.

The move is aimed at ensuring sufficient sugar supplies in the domestic market. Its potential impact on sugar stocks, ethanol production and sugarcane farmers remains a key concern. The implications for the sugar industry and the ethanol supply chain are expected to draw attention as the proposed restriction takes effect.