ESY 2026-27: OMCs invite bids for around 1100 crore litres of ethanol; Sugarcane Juice and B-Heavy Molasses excluded
Oil marketing companies have invited bids for 1,100 crore litres of ethanol for ESY 2026-27, excluding sugarcane juice, syrup and B-heavy molasses under the government’s zero sugar-diversion directive. Eligible feedstocks include maize, C-heavy molasses and rice, while allocations remain subject to pending court proceedings.
The Oil Marketing Companies (OMCs) have invited bids for the supply of around 1100 crore litres of Denatured Anhydrous Ethanol for cycle 1 of Ethanol Supply Year (ESY) 2026-27.
As per the tender document, the government has issued directions that sugar diversion for ethanol be reduced to zero for ESY 2026-27. Thus, no offers have been sought for ethanol produced from Sugarcane Juice/ Sugar/Sugar Syrup and B-Heavy molasses in this Quantity Bid Tender.
Accordingly, ethanol produced from different feedstocks namely C-Heavy molasses, Damaged Food Grains, Surplus Rice procured from FCI, Maize, Other Feedstock(s) as per National Policy on Biofuels (NPB) have been provided as separate categories in the Quantity Bid Form.
The allocated quantities under this Quantity Bid will be procured as per the prevailing rates of ethanol during ESY 26-27 (as declared by OMCs / Government of India).
The tender document specifies that bidders shall offer ethanol quantities in KL against the requirement of OMCs, feedstock wise – quarter wise for the period of 1st November 2026 to 31st October 2027 in this quantity bid for the quarters: ESY Quarter 1 (Q1): November 2026, December 2026 & January 2027, ESY Quarter 2 (Q2): February 2027, March 2027 & April 2027, ESY Quarter 3 (Q3): May 2027, June 2027 & July 2027 and ESY Quarter 4 (Q4): August 2027, September 2027 & October 2027.
The validity of the bids submitted will be till 31st October 2027.
As per the tender, any quantities of Ethanol already allocated to successful bidders under this Quantity Bid Tender for C1 of ESY 2026–27 shall be subject to the final outcome of proceedings arising from Writ Petition No. 109133 of 2025 (GM-RES), including following subjudice matters.
Pending proceeding:
1. SLP (C) No. 22411 of 2026 (lead matter), SLP (C) Nos. 22531, 22648, 22922, 22963, 25589 and 26531 of 2026, and Transfer Case (Civil) Nos. 167 and 168 of 2026, pending before the Hon’ble Supreme Court of India.
2. W.P. No. 2298 of 2026 (Bombay High Court, Nagpur Bench) and C.W.J.C. No. 3296 of 2026 (Patna High Court), both transferred to the Hon’ble Supreme Court by order dated 04.08.2026.
3. all other connected or tagged matters and any other judicial proceedings before any Court or Tribunal relating to the ethanol allocation methodology of the OMCs, including Common Quantity Bid Tender No. 22376 dated 23.09.2025.
“Pursuant to any order, direction, judgment, or determination passed in such proceedings, the Oil Marketing Companies (OMCs”) reserve the absolute right, at any stage and without liability, to revise, reallocate, reduce, withdraw, modify, or cancel any quantity allocated under this Tender. By participating in this Quantity Bid Tender, the Bidder unconditionally acknowledges and accepts this condition and waives any claim, demand, action, or proceeding against the OMCs arising out of, or in connection with, any such revision, reallocation, reduction, withdrawal, modification, or cancellation of allocated Ethanol quantities. Accordingly, no claim for compensation, damages —whether direct, indirect, or consequential—loss of profits, loss of opportunity, costs, or any other monetary or equitable relief shall lie against the OMCs in respect thereof,” the tender document further added.
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Source : ChiniMandi
