Delivery of surplus FCI rice for ethanol may resume: Media report
The Indian government halted ethanol production from excess rice in July 2023 to ensure adequate rice availability and reduce food prices ¹. The move came after a ban on exports of non-basmati variety white rice due to retail rice price rises ¹. Despite this, India still aims to achieve 20% ethanol blending in gasoline by 2025 ¹.
New Delhi: Considering the demand of ethanol producers, the government may resume delivery of surplus FCI rice for ethanol production, reported Business Standard.
According to the news report, there is also the possibility that the delivery of surplus FCI rice for ethanol, which has been kept in abeyance for several months, might be resumed. Grain-based ethanol manufacturers have urged the government to restart the supply of cheap rice from FCI godowns for the ethanol program, warning of plant closures if their demands are not met.
Media report further added that they argue that following the recent hike in Minimum Support Price (MSP) for paddy in the 2024-25 marketing season, maize prices have increased to nearly Rs 26-27 per kg from approximately Rs 22-23 per kg. However, there has not been a corresponding increase in the price at which ethanol produced from maize is procured.
According to the Petroleum Planning & Analysis Cell (PPAC) Monthly Ready Reckoner report, Ethanol blending with Petrol was achieved at 15.90 per cent during June 2024 and cumulative ethanol blending during November 2023-June 2024 was 13.0 per cent.
To achieve the target of 20% blending by 2025, about 1016 crore litres of ethanol are required, and the total requirement of ethanol including for other uses is 1350 crore litres. For this, about 1700 crore liters of ethanol-producing capacity are required to be in place by 2025, considering the plant operates at 80% efficiency. The Government has estimated the demand for ethanol required for 20% blending by 2025, keeping in view the growth of petrol-based vehicles in two-wheeler and passenger vehicle segments and the projected sale of Motor Spirit (MS).
Source Link : https://www.chinimandi.com/delivery-of-surplus-fci-rice-for-ethanol-may-resume-media-report/
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