Ethanol Makers Can Sale 23 Lakh Tonnes FCI Rice: Govt

• By Thetripurapost Desk, New Delhi
• Aug 29, 2024
• 446

The government on Thursday allowed grain-based ethanol distilleries to sell up to 23 lakh tonnes of rice from Food Corporation of India (FCI) stocks, lifting the ban imposed last year.

According to a directive, the Food Ministry has allowed ethanol producers to participate in e-auctions under the Open Market Sale Scheme (OMSS) and purchase rice between August and October, 2024.

The decision comes at a time when the government is grappling with a stock of over 540 lakh tonnes of surplus rice, prompting efforts to create storage space for the upcoming crop.

“A maximum of 23 lakh tonnes may be permitted for lifting of ethanol distilleries,” the ministry said.

Ethanol producing companies can purchase rice through weekly e-auction. Rice purchase is subject to ethanol allocation by oil manufacturing companies.

The government had stopped the sale of rice for ethanol production in July, 2023.

The FCI has been conducting e-auctions for sale of rice to private traders to manage surplus inventory since last July.

The move signals a change in the government's stance on using food grains for biofuel production as it balances food security concerns with the need to manage excess stocks