Govt. Fixes Rice Quantity and Price for Ethanol Production

11-Jul-2025 12:34 PM

New Delhi. The Central Government has finalized the quantity and price of rice from its buffer stock for distilleries engaged in ethanol production.

Initially, 24 lakh tonnes of rice had been allocated to ethanol manufacturers, but this was later increased by an additional 28 lakh tonnes, bringing the total quota to 52 lakh tonnes.

The price of rice has been fixed at ₹2250 per quintal until 31 October 2025, and ₹2320 per quintal from 1 November 2025 to 30 June 2026. So far, distilleries have lifted about 17 lakh tonnes from the total allocated stock.

According to a notification by the Food Ministry, old and broken rice should be prioritized for ethanol production.

A new rice category under the Rice Milling Transformation Scheme has been introduced, focusing on fragmented rice, which will be made available to distilleries and private buyers through e-auctions at a reserve price of ₹2320 per quintal starting 1 November 2025.

Due to high maize prices and limited availability, grain-based distilleries are increasingly turning to government rice as an alternative. Currently, rice is being procured at ₹2250 per quintal.

For cooperative agencies such as NAFED, NCCF, and Central Store, which sell rice under the Bharat brand, the price has been set at ₹2480 per quintal, effective from 1 November 2025 to 30 June 2026.

However, the ₹200 per quintal subsidy from the Price Stabilization Fund for these agencies was discontinued as of 1 July 2025.