★ The Food Corporation of India (FCI) has sold only 2.2 million tonnes of rice to distillers for ethanol production so far in the 2024-25 supply year (November–October), achieving just 42% of the allocated target of 5.2 million tonnes.

★ With only two months remaining, rice offtake remains sluggish. On average, just around 12,000 tonnes of rice are being lifted daily. At this pace, selling the remaining 1.8 million tonnes within the next 60–65 days seems unlikely.

★ FCI has issued allotment letters for about 4.0 million tonnes of rice to distillers. To clear the remaining 1.8 million tonnes before the end of October, the average daily offtake needs to rise sharply to 30,000–40,000 tonnes.

★ The slow pace of rice lifting for ethanol production is mainly due to operational delays, including late announcements of allocations and delays in issuing allotment letters.

★ To liquidate the surplus rice lying in government godowns, the Centre had earlier increased the allocation for ethanol production by 2.8 million tonnes, taking the total allocation to 5.2 million tonnes. However, with the 2024-25 supply year ending in October and oil marketing companies (OMCs) closing new ethanol supply orders, demand from distillers is unlikely to rise in the coming weeks.

★ Currently, FCI is offering rice to distillers at a subsidized price of Rs 2,250 per 100 kg, compared to its economic cost of Rs 3,975 per 100 kg. For the next ethanol supply year, starting November 2025, the government has maintained the allocation at 5.2 million tonnes, but the revised selling price will be Rs 2,320 per 100 kg.