NEW DELHI: The Central government on Friday reduced the price of rice supplied from its buffer stock to grain-based ethanol producers by a significant 20 per cent, within 10 days after it was fixed at Rs 2,800 per quintal.

The new price, set at Rs 2,250 per quintal, will bring a major relief to the ethanol-producing industry.

The price drop also applies to state governments and state-owned corporations that want to buy rice directly from the Food Corporation of India without participating in an e-auction.

It is worth noting that the Karnataka government had been demanding extra rice from the Centre for its implementation of the Anna Bhagya Lakshmi scheme. Despite the state government offering to pay Rs 34 per kg in 2023, the Centre had not budged. However, in August 2024, after other states such as Tamil Nadu joined the demand for extra rice, the government was finally ready to provide extra rice at Rs 28 per kg.

While what transpired in the government circles in the last 10 days is not known, it is being said that the ethanol industry was not willing to buy costly rice, prompting the government to take a call.

Union Minister of Consumer Affairs, Food and Public Distribution, and New and Renewable Energy, Pralhad Joshi, announced the significant revision in the Open Market Sale Scheme (Domestic) (OMSS-D) Policy for 2024-25.

“The revised OMSS-D policy reinforces our commitment to food security and sustainable energy for a stronger, greener future. Empowering states and communities through progressive policies!” he posted on X.

Published Date: December 19, 2025