We theoretically investigate the periodically modulated interaction effect on the propagation properties of a traveling plane wave in a Bose–Einstein condensate (BEC) trapped in a deep annular lattice with local defects both analytically and numerically. By using the two-mode ansatz and the tight-binding approximation, a critical condition for the system preserving the superfluidity is obtained analytically and confirmed numerically. We find that the coupled effects of periodic modulated atomic interactions, the quasi-momentum of the plane wave, and the defect can control the superfluidity of the system. Particularly, when we consider the periodic modulation in the system with single defect, the critical condition for the system entering the superfluid regime depends on both the defect and the momentum of the plane wave. This is different from the case for the system without the periodic modulation, where the critical condition is only determined by the defect. The modulation and quasi-momentum of the plane wave can enhance the system entering the superfluid regime. Interestingly, when the modulated amplitude/frequency, the defect strength, and the quasi-momentum of the plane wave satisfy a certain condition, the system will always be in the superfluid region. This engineering provides a possible means for studying the periodic modulation effect on propagation properties and the corresponding dynamics of BECs in disordered optical lattices.