SC orders status quo on ethanol supply allocation for year 2025-26
New Delhi, June 30
The Supreme Court on Tuesday ordered status quo with regard to the Karnataka High Court direction to Oil Marketing Companies to revisit the distribution of ethanol for the 2025-2026 supply year.
A bench of Justices MM Sundresh and Justice Sheel Nagu passed the order after Attorney General R Venkataramani, appearing for Bharat Petroleum Corporation Limited (BPCL), said the High Court order has been challenged.
Attorney General said the High Court order could destabilise the national policy for 20 per cent ethanol-petrol blending.
The apex court was hearing an appeal of BPCL challenging a June 2026 Karnataka High Court order to Oil Marketing Companies (OMCs) to consider and decide a representation submitted by a distillery seeking enhancement of ethanol allocation for 2025-26.
The bench also issued notice to the company on whose petition the High Court had passed the order. "Issue notice. List on reopening. Till the next date of hearing, there shall be status quo," ordered the top court.
During the hearing, the Attorney General also informed the bench that ethanol supply contracts were finalised in October 2025 itself, and several petitions were pending in various High Courts and sought time to file appropriate transfer petitions.
The High Court had directed Oil Marketing Companies (OMCs) -- BPCL, Hindustan Petroleum Corporation Limited and Indian Oil Corporation -- to consider a request by a distillery seeking an increase in its ethanol allocation before the tender process was finalised.
The High Court's order had come on a plea of one M/S Vinp Distilleries and Sugar Private Limited, a dedicated ethanol manufacturer, which had challenged reduced allocation of ethanol supply despite having established a dedicated ethanol plant.
— ANI
Reader Comments
The sugarcane lobby is very powerful in Karnataka and they're trying to corner the ethanol market. While I support 20% blending target, the tender process must be transparent. Small distilleries like Vinp should get their fair share too.
As someone working in the renewable energy sector, I think the court is right to maintain status quo. But the real issue is that our ethanol production capacity is still not enough to meet blending targets. We need more investment in 2G ethanol plants!
Looks like another case of big oil companies trying to stifle competition. If a company has built a dedicated ethanol plant as per government policy, they deserve a fair allocation. The High Court order made sense - why should established ethanol producers be left out?
Meanwhile, petrol prices are sky high and they're fighting over ethanol allocation! 😅 On a serious note, this 20% blending goal is ambitious but we need to ensure small players aren't squeezed out by the PSUs and big sugar mills.
I'm a farmer from UP, and let me tell you - the ethanol policy has been a lifeline for sugarcane growers. But these corporate battles in courts just delay payments to farmers. The government should streamline the allocation process so both distilleries and farmers benefit.
S Siddharth J