Price of broken rice for ethanol production likely to increase
The government is set to raise the reserve price of rice for ethanol distilleries under the OMSS(D) from ₹2,250 to ₹2,320 per quintal starting November 1, 2025. The cap remains at 52 LMT. The move supports ethanol production for blending, which reached 19.8% in May. Old/broken rice will be prioritized, with tenders for 2025–26 expected by August/September.
The government is likely increase the reserve price for the sale of rice to ethanol distilleries for ethanol production under the Open Market Sale Scheme (Domestic) – OMSS(D).
As per the existing OMSS(D) Policy 2024-25, the reserve price for the sale of rice to ethanol distilleries for ethanol production is Rs. 2,250 per quintal (PAN-India), for a total quantity not exceeding 52 lakh metric tonnes (LMT), and is valid until October 31, 2025.
In a recent meeting, the Committee of Secretaries (CoS) recommended the sale of rice to distilleries for ethanol production at Rs. 2,320 per quintal, up from the current Rs. 2,250, with a cap of 52 LMT.
The new reserve price will come into effect from November 1, while the current rate will remain valid until October 31.
The tender process for ethanol procurement during the Ethanol Supply Year (ESY) 2025–26 (beginning November 1, 2025) is expected to be initiated in August/September.
It was recommended that for the purpose of supplying rice to ethanol distilleries for production of ethanol, old/broken rice should be utilized to the extent feasible.
In the current ESY 2024-25, ethanol blending in petrol reached 19.8 per cent in May, while the cumulative average ethanol blending from November 2024 to May 2025 stood at 18.8 per cent. According to official data, the ethanol blended under the EBP program in May 2025 totaled 95.1 crore liters, bringing the total to 572.1 crore liters from November 2024 to May 2025.
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Source : Chinimandi
