India’s open market rice sale norms will likely help meet 20% ethanol blending target
The Indian government’s revised rice sales policy for ethanol distilleries allocates 7.2 million tonnes of FCI rice for ESY 2026–27, up from 5.5 million tonnes last year, with revised prices to improve utilisation of aged stocks. Industry experts say the move will support the 20% ethanol blending target while converting surplus rice into a valuable industrial feedstock.
The Indian government’s revised standard operating procedure (SOP) for sale of rice to ethanol distilleries for the 2026-27 supply year (ESY) will ensure meeting the 20 per cent ethanol blending target, while utilising aged stocks better, say trade experts.
“Earlier, old rice had limited commercial value. Now, it has become an industrial raw material for ethanol,” said New Delhi-based exporter Rajesh Paharia Jain.
Earlier this month, the government fixed ₹2,320 per quintal for rice to be supplied for manufacturing ethanol till October 31. From November 1, it will be supplied at ₹2,390 per quintal. In addition, the Food Ministry has set aside 7.2 million tonnes (mt) from FCI stocks for distilleries for the 2026-27 season. Last year, the ministry allocated 5.5 mt.
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Source : The Hindu Businessline
