By ChiniMandi 

During the ongoing Monsoon Session of the Parliament, details were asked about the quantity of rice, maize, damaged foodgrains and other foodgrains used or diverted for ethanol production during the last five years and the current year, Commodity, State,
year and agency-wise.

MoS, Consumer Affairs, Food and Public Distribution, Nimbuben Jayantibhai Bambhaniya said that the Ethanol Distilleries procure Maize and Broken Rice as feedstock for production of ethanol mainly through open market. Government of India allows sale of excess stock of rice to ethanol distilleries under Open Market Sale Scheme (Domestic) (ON4SS (D)) through Food Corporation of India (FCI) for ethanol production under Ethanol Blended Petrol (EBP) Programme.

Details of quantity of rice supplied by FCI for ethanol production; and quantity of maize and damaged foodgrain/ broken rice based on ethanol supplied by distilleries to Oil Marketing Companies (OIVICs), Ethanol Supply Year (ESY) (November – October) –wise is given as below:

Ethanol Supply Year(ESY) -wise quantity of surplus FCI rice, maize & damaged food grains used for ethanol production Feedstock used for ethanol production (in LMT)

Government, after maintaining buffer stocks and making provision for meeting the
requirements under National Food Security Act (NFS A) and Other Welfare Schemes (OWS), sells only excess stock of rice out of Central Pool under Open Market Sale Scheme (Domestic) [C)MSS (D)]. The accumulated surplus stock of rice is allocated as feedstock for production of ethanol.

There is no impact of diversion of surplus FCI rice on retail food inflation. Inclusion of Maize as a feedstock for ethanol production has helped in providing assured market to maize farmers and ensuring better prices to them. As per the third advanced estimates of
production of foodgrains for the year 2025-26, production of Maize is estimated at 550 LIVIT.

The quantity of Maize is sufficient to cater the demand of ethanol production, poultry, cattle feed and other purposes. To maintain feed availability, the poultry feed industry is also adopting other domestically available ingredients such as Rice bran, Broken Rice, Bajra and Wheat offal.

FCI rice, only when available in excess, is diverted for ethanol production, after meeting the requirements of the National Food Security Act (NFSA), Other Welfare Schemes (OWS) and maintaining buffer stock. The Government, keeping in view the aspect of food security has earlier stopped supply of FCI rice for ethanol production w.e.f 14.08.2023 during ESY 2022-23.

Later on, in view of availability of excess stock of FCI rice, the Government again allocated FCI rice for sale to ethanol distilleries for ethanol production during ESY 2024-25 and 2025-26.

Diversification of feedstock base for ethanol production by the Government, such as sugarcane juice, B-heavy molasses, C-heavy molasses, maize, damaged food grains, surplus FCI rice(only when available in excess) has reduced dependence on any single feedstock(crop) and has supported agricultural diversification.

Published Date: July 30, 2026