How FCI rice is driving govt’s ethanol push

FCI rice supplied to ethanol distilleries increased from3.2 million tonnesin ESY 2024-25 to 4.4 milliontonnes in the current supply year (up to June 30).

Food Corporation of India (FCI) supplied a record 4.4 million tonnes of surplus Food Corporation of India (FCI) rice till June 30 for ethanol production in the current Ethanol Supply Year (ESY) 2025-26, which begins in November and ends in October, marking a sharp increase in the use of government grain after supplies resumed last year following a suspension over food security concerns.

The government has said that diversion of surplus FCI rice has had no impact on retail food inflation. (HT Photo)

The surge follows a new procurement condition introduced for the current ethanol supply year requiring grain-based distilleries