Additional Rice Allocation for Ethanol Production

07-May-2025 08:26 AM

Additional Rice Allocation for Ethanol Production
★ For the 2024-25 season, an additional 2.8 million tons of rice has been allocated under the OMSS (Open Market Sale Scheme) for ethanol production, over and above the previous 2.4 million tons of tendered rice.
★ From October 1, 2024, to October 31, 2025, the Food Corporation of India (FCI) will offer rice to distilleries for ethanol production at a reserve price of Rs. 2,250 per ton. This reserve price will also apply to the additional 2.8 million tons of rice.
★ The government is now focusing more on rice for ethanol production. Initially, the emphasis was on ethanol production from maize, sugar, B molasses, and C molasses, but now rice is being increasingly used. This shift could lead to a rise in rice prices in the future.
★ I Grain India has reported a rise in rice prices over the past few weeks, and gradual market improvement is being observed.
★ Several countries that increased rice imports after India stopped rice exports are now facing rice shortages.
★ There is an expected increase in demand for Indian rice.
★ Pakistan and Thailand are facing weaker rice stocks, and it will be interesting to see how the water scarcity due to the potential blocking of Indus Water Treaty and other river waters impacts Pakistan's agricultural system, as this is the time for paddy sowing in Pakistan.
★ The performance of the monsoon will also play a crucial role in determining the rice supply and market trends.