Government reduces price of FCI rice for distilleries producing ethanol

The government has revised the provision for the sale of rice stocks exceeding buffer stocking norms under the Open Market Sale Scheme (Domestic) (OMSS(D)) Policy for the year 2024-25 and reduced the price for distilleries producing ethanol. The government has set the reserve price at Rs 2,250 per quintal (fixed) pan India for the sale of rice to distilleries for ethanol production. Earlier, it was fixed at Rs 2,800 per quintal.

The sale of FCI rice for ethanol production will be permitted only to distilleries registered with Oil Marketing Companies (OMCs) as suppliers of ethanol. Distilleries, along with a copy of the signed contract with OMCs regarding the supply of ethanol, may approach the FCI depot of their choice. It will allocate the rice as per the quantity of ethanol allocated to distilleries in their contract with OMCs. The OMCs will furnish details of the quantity of ethanol produced from FCI rice, received at the respective depot every month.

The reserve price for the sale of rice to ethanol distilleries for the production of ethanol is fixed for a total quantity not exceeding 24 LMT. For this purpose, old rice can be utilized to the extent feasible. As per order, the tender under Cycle 3 (C3) for the supply of about 110 crore litres of ethanol during ESY 2024-25 should be restricted to ethanol produced using FCI rice.

The reserve price of rice has been fixed at Rs 2,250 per quintal (Pan-India) for sale to state governments, state government corporations, and community kitchens, without the requirement of participating in e-auctions. The OMSS(D) Policy for 2024-25 will be valid till 30th June 2025.