Ethanol Industry Boosted by Cabinet Proposal on Broken Rice Allocation

The Centre is moving forward with a proposal to shift broken rice from the public distribution system (PDS) to the ethanol industry, aiming to cut the allocation from 25% to 10% of distributed grains. This change would unlock approximately 90 lakh tonnes of broken rice annually for ethanol production.

Food Secretary Sanjeev Chopra highlighted that this reform aims to stabilize the ethanol sector's feedstock supply, thereby reducing its dependence on the Food Corporation of India's whole grain stocks. Chopra emphasized the importance of an uninterrupted supply chain amidst climate change challenges.

The proposal is part of a broader strategy to enhance India's ethanol blending program, currently at 20%, as global crude oil prices surge. Future plans include raising the blending limit further and promoting flex-fuel vehicles.