News Capsule: In 2024–25, FCI supplied 3.2 million tonnes of rice for ethanol production
01-Nov-2025 11:57 AM
News Capsule: In 2024–25, FCI supplied 3.2 million tonnes of rice for ethanol production
★ By the end of the 2024–25 supply year (October 31), the Food Corporation of India (FCI) sold about 3.2 million tonnes of rice — around 62% of the 5.2 million tonnes allocated for ethanol production.
★ This outcome was in line with government expectations; the Food Secretary had earlier projected around 3 million tonnes of sales by October-end.
★ The offtake for ethanol was slow due to delays in allocation and issuance of permission letters. The first two tender cycles were delayed, affecting the expected lifting pace.
★ In August 2024, the government lifted a 13-month ban on FCI rice supply to distilleries. Later, in May 2025, the allocation was raised to 5.2 million tonnes — an addition of 2.8 million tonnes over the earlier 2.4 million tonnes fixed in January.
★ As of October 1, central government warehouses held 35.6 million tonnes of rice — the highest October stock in 20 years, mainly due to open procurement and state bonuses above MSP.
★ During the ethanol year that began in November, oil marketing companies floated two tenders by January, both based on the earlier 2.4 million tonne allocation.
★ For the upcoming ethanol year (Nov 2025–Oct 2026), rice offtake is expected to be stronger. Though distilleries still find maize a more profitable feedstock, the government has mandated that at least 40% of grain-based ethanol must come from FCI rice.
★ The government has again allocated 5.2 million tonnes of rice for 2025–26. It also raised the procurement price of FCI rice-based ethanol from ₹58.50 to ₹60.32 per litre, while maize-based ethanol will remain at ₹71.86 per litre.
★ From this 5.2 million tonnes of rice, around 2.34 billion litres of ethanol can be produced. Oil companies have already placed orders for 2.33 billion litres, and distilleries are expected to lift the full allocation next year.