News Capsule: Only 54% of Rice Allocated for Ethanol Production Sold in 2024–25
14-Oct-2025 11:58 AM
News Capsule: Only 54% of Rice Allocated for Ethanol Production Sold in 2024–25
★ The Food Corporation of India (FCI) has sold only about 2.8 million tonnes, or 54%, of the 5.2 million tonnes of rice allocated for ethanol production in 2024–25.
★ The government has been promoting the use of rice for ethanol production to reduce surplus stocks in FCI warehouses. However, procurement has remained slow, with only two weeks left in the current cycle. FCI officials expect total sales to reach around 2.9 million tonnes.
★ The sluggish pace of sales is attributed to procedural delays, such as late announcements of allocations and the slow issuance of allotment letters by oil marketing companies.
★ The government has mandated that at least 40% of grain-based ethanol must be produced using surplus rice from FCI. This year, the price for rice-based ethanol has been increased to ₹60.32 per litre.