News Capsule: Increase in Rice Usage for Ethanol Production, Rise in Rice DDGS Output — Challenge for Maize DDGS and Meal
11-Oct-2025 12:36 PM
News Capsule: Increase in Rice Usage for Ethanol Production, Rise in Rice DDGS Output — Challenge for Maize DDGS and Meal
★ The use of rice for ethanol production in India has been rising steadily. In 2021–22, only 1.69 lakh tons of rice were used for ethanol manufacturing, which increased to 15.15 lakh tons in 2022–23 and 8.96 lakh tons in 2023–24.
★ By August 2025, this figure had reached 20.3 lakh tons, clearly indicating a sharp rise in rice consumption by distilleries.
★ The Food Corporation of India (FCI) is currently supplying rice to distilleries at ₹2250 per quintal, a rate valid until October 31, 2025. Thereafter, a new rate of ₹2320 per quintal, inclusive of all costs, will apply until June 2026.
★ Another outcome of this increased rice usage is the production of around 8 lakh tons of Rice DDGS (Dried Distillers Grains with Solubles), which is primarily being utilized by the feed industry.
★ The growing availability of Rice DDGS is expected to put pressure on the demand for maize DDGS and meal. This may shift the balance within the animal feed industry, as Rice DDGS is comparatively cheaper and more easily available as a feed ingredient.