Government Rice Sales to Ethanol Makers Far Below Quota
27-Aug-2025 11:57 AM
New Delhi. Food Corporation of India (FCI) has so far sold about 22 lakh tonnes to distillers for ethanol production in the current marketing season (November-October) of 2024-25, which is 42 percent of the quota of 52 lakh tonnes of rice fixed for biofuel production.
Now only two months are left for the marketing season to end. It seems difficult for distillers to lift the remaining 30 lakh tonnes of rice in this period.
FCI officials say that on an average about 12 thousand tonnes of rice is being lifted by distillers per day and at this pace (rate) it does not seem possible to lift the remaining quantity of 30 lakh tonnes of rice in the next 60-65 days. Distillers have received allotment letters for about 40 lakh tonnes of rice,
out of which only 22 lakh tonnes have been lifted. The remaining 18 lakh tonnes of rice is to be lifted by 31 October 2025. For this, an average of 30-40 thousand tonnes of rice needs to be lifted daily.
According to industry analysts, the pace of rice lifting for ethanol production has remained slow due to operational problems.
Firstly, the government announced the allocation of rice very late and secondly, the allocation letter to the distillers was also issued late.
The government has a huge surplus stock of rice. The strategy to reduce it should have been prepared much earlier but it was announced very late.
During the initial phase, the government had fixed a quota of only 24 lakh tonnes of rice for ethanol production, so distillers tried to buy it quickly.
Later the government increased this quota by 28 lakh tonnes to 52 lakh tonnes, so distillers did not have to show haste. Now petroleum companies have stopped giving orders for supply of ethanol, so the activity of distillers has reduced.
On 1 July 2025, there was a direct stock of 380 lakh tonnes of rice in the central pool, while the stock equivalent to 140 lakh tonnes of rice was also present with the rice millers. This rice is yet to be delivered.