Archive · 29 Jul 2026
Centre Assures Surplus Rice for Ethanol Won't Impact Food Security
The Indian government has been using surplus rice from the Food Corporation of India (FCI) for making ethanol.
They say this won't affect the food we eat because only extra rice is used.
They also use maize and other materials to make ethanol, which helps farmers grow different crops.
Some people worry that using food grains for ethanol might make food more expensive, but the government says prices haven't gone up.
They stopped using FCI rice for a while but started again when they had enough extra rice.
This helps India meet its goals for mixing ethanol with fuel.
The Indian government uses surplus FCI rice for ethanol production after meeting food security needs.
Maize usage for ethanol production increased significantly in the current supply year.
India's maize production is sufficient for ethanol, poultry, and other industries.
The government assures that retail food prices remain unaffected by the diversion of rice for ethanol.
Ethanol production uses multiple feedstocks, reducing dependence on a single crop.
- Who
- Indian Government
- What
- Diversion of surplus FCI rice for ethanol production
- When
- Resumed in ESY 2024-25 and ESY 2025-26
- Where
- India
- Why
- To meet ethanol blending targets and support agricultural diversification
Government Perspective
Public Concerns
Impact on Food Security
Government Perspective
The government asserts that only surplus rice stocks are used for ethanol production, ensuring food security needs are met first.
Public Concerns
Public concerns suggest that diverting rice for ethanol could lead to food inflation and affect food security.
Ethanol Production and Food Prices
Government Perspective
The government claims that retail food prices remain unaffected by the diversion of rice for ethanol.
Public Concerns
There are fears that using food grains for ethanol could drive up food prices, especially during periods of high inflation.
- Maize Usage for Ethanol
- 131.1 LMT in ESY 2024-25, up from 75.4 LMT in ESY 2023-24
- Maize Production
- 550 LMT estimated for 2025-26
- Ethanol Feedstocks
- Sugarcane juice, B-heavy molasses, C-heavy molasses, maize, damaged foodgrains, surplus FCI rice
- FCI Rice for Ethanol
- Stopped from August 14, 2023, resumed in ESY 2024-25 and ESY 2025-26
- Food Inflation Impact
- Government states no impact on retail food prices