Govt revises modalities for FCI rice sale to ethanol distilleries in ESY 2025-26
The Centre revised FCI rice sale norms for ethanol distilleries under OMSS(D) for ESY 2025-26, prioritizing old and broken rice supplies. Around 72 LMT rice will be available at ₹2,320/quintal, with strict OMC-linked allocation, pre-payment rules, defined lifting timelines, and enhanced grievance redressal mechanisms.
The Ministry of Consumer Affairs, Food and Public Distribution has issued revised modalities and standard operating procedures (SOPs) for the sale of Food Corporation of India (FCI) rice to ethanol distilleries under the Open Market Sale Scheme (Domestic), or OMSS(D), for Ethanol Supply Year (ESY) 2025-26, according to a government communication dated May 8, 2026, addressed to the Chairman and Managing Director of FCI.
The revised framework, issued by the Directorate of Sugar and Vegetable Oils, directs that old or broken rice should be prioritised for supply to distilleries for ethanol production to the extent feasible.
Under the revised terms, FCI rice will be made available at Rs 2,320 per quintal on a pan-India basis from November 1, 2025, to June 30, 2026. The total quantity available for ethanol conversion has been capped at 72 lakh metric tonnes (LMT), comprising the 52 LMT already allocated and an additional allocation of 20 LMT. The government said no additional transportation cost will be built into the rice price, and the scheme will be open to distilleries in both deficit and surplus states.
Access to FCI rice under the scheme will be restricted to distilleries that are registered with oil marketing companies (OMCs) as ethanol suppliers. To obtain allocations, distilleries must present a valid, signed contract with an OMC for ethanol supply from FCI rice and approach their preferred FCI Divisional Office, which will then designate a specific depot for supply. The concerned Divisional Manager will allocate rice in proportion to the ethanol quantity stipulated in each distillery’s OMC contract, either in a single lot or in tranches as required.
The revised modalities specify that all supplies will be on a pre-payment basis, with no credit facility permitted. Transportation charges from FCI godowns to distillery premises will be borne entirely by the distilleries. Once rice is received and ethanol is supplied, distilleries must submit a certificate from the relevant OMC confirming the ethanol delivery to the FCI Divisional Manager. The OMCs have also been asked to furnish monthly data to the concerned FCI Divisional Manager on the quantity of ethanol produced from FCI rice received at respective depots.
The accompanying SOPs set out specific timelines for the lifting process. Distilleries are required to place indents in advance along with advance payment. FCI’s regional manager will issue Release Orders (ROs) within 24 hours of payment verification. Distilleries must complete the lifting of rice within ten working days from the date of RO issuance and are required to share a tentative daily lifting schedule with the concerned Depot Manager in advance. FCI’s Depot Manager is responsible for ensuring labour availability to facilitate timely lifting.
The SOPs also address contingency situations. If rice stock is unavailable at a distillery’s preferred FCI division, it may opt for another division. Distilleries seeking full rake-quantity supply directly to a nearby rail unloading facility may be accommodated through rail rakes, subject to the rake being released within the Railways’ prescribed timeline. In cases where a depot is unable to provide adequate manpower, distilleries may be permitted to lift rice on gazetted holidays or non-working days, except at godowns operated by departmental or DPS labour.
Any unresolved issue related to lifting of FCI rice at depots is to be escalated by the Depot Manager to the General Manager (Region) or Divisional Manager, and further to the Executive Director (Zone) if required. Distilleries may register grievances related to rice lifting through the FCI grievance portal or the FCI Grievance Redressal mobile application available on Google Play Store.
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Source : ChiniMandi
