Centre says no proposal to resume sale of subsidised rice for ethanol

The Union government has no proposal to resume sale of subsidised rice to grain-based distilleries for the production of ethanol, Food Secretary Sanjeev Chopra said.

He was responding to questions on whether the government plans to resume the sale of subsidised rice for ethanol in the near future amid reports of likely fall in sugar production in the 2024-25 season (October-September).

The industry which has put up grain-based distilleries should use maize for ethanol production, Mr. Chopra added.

However right now, it is too early to predict any kind of sugar production figures for next season. “We will get to know about the production during August for the 2024-25 season.”

In any eventuality, the stock can be used not only for domestic consumption but also for diversion for ethanol production, he added.

The Secretary further said the increase in fair and remunerative price (FRP) of sugarcane for the next season has been a good signal to farmers to increase the sowing.

The government has increased sugarcane FRP to ₹340 per quintal for 2024-25 season from Rs 315 per quintal this season.