Canada questions India at WTO over use of public rice stocks for ethanol production
Canada has questioned India at the WTO over diverting publicly held rice stocks to ethanol production, seeking details on quantities supplied, sale prices, procurement targets and MSP reporting. The issue follows similar concerns raised by the US and will be discussed at the WTO Committee on Agriculture meeting.
New Delhi: Canada has sought clarification from India at the World Trade Organization (WTO) over the diversion of publicly held rice stocks to distilleries for ethanol production, The Economic Times reported.
Canada has asked India to disclose the quantities of rice supplied from public stocks to ethanol producers since 2020-21 and explain whether the diversion complies with WTO food security objectives.
It has also questioned whether India’s rice procurement targets under public stockholding programmes account for anticipated demand from ethanol producers.
Canada has sought details of the prices at which Food Corporation of India (FCI) rice stocks were sold to distilleries and how the associated Minimum Support Price (MSP) support is reported to the WTO.
The questions will be discussed at the WTO Committee on Agriculture meeting later this month.
Canada’s queries follow similar concerns raised by the US in September. Washington alleged that India had procured rice beyond its food security requirements and subsequently released surplus stocks below cost for non-food purposes, including ethanol production.
The US also claimed that rising rice stocks during 2025-26 had prompted India to increase the allocation of FCI-held rice to ethanol manufacturers.
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Source : ChiniMandi
