Archive · 29 Jul 2026
Govt: Broken Rice for Ethanol Not Impacting Food Inflation
The Indian government has stated that using surplus broken rice to make ethanol is not causing food prices to go up.
They make sure there is enough rice stored for people's needs before using any extra rice for ethanol.
The government also said that using maize for ethanol helps farmers get better prices.
They have enough maize for ethanol, animal feed, and other uses.
The ethanol program has saved money by reducing oil imports and has helped farmers earn more.
It has also reduced pollution.
The government shared these details in a report to the Parliament.
The government asserts that diverting surplus broken rice for ethanol does not impact food inflation.
Ethanol production is allowed only after maintaining buffer stocks and meeting NFSA requirements.
Maize is a significant feedstock for ethanol, providing better prices for farmers.
India's maize output is projected at 55 million tonnes for 2025-26, sufficient for various uses.
The ethanol blending program has saved foreign exchange, reduced emissions, and increased farmers' earnings.
- Who
- Indian Government, Minister of State for Food Nimuben Jayantibhai Bambhaniya
- What
- Diversion of surplus broken rice for ethanol production
- When
- Information provided in a written reply to a question in the Lok Sabha on Wednesday
- Where
- New Delhi, India
- Why
- To maintain adequate buffer stocks and meet welfare scheme requirements, while also providing new market opportunities for farmers
Government Perspective
Potential Concerns
Impact on Food Inflation
Government Perspective
The government asserts that the diversion of surplus broken rice to ethanol production does not impact food inflation, as it is done only after maintaining adequate buffer stocks and meeting welfare scheme requirements.
Potential Concerns
Critics may argue that any diversion of food grains for non-food purposes could potentially impact food availability and prices, especially in times of scarcity.
Maize as Feedstock
Government Perspective
The government highlights that the inclusion of maize as a feedstock for ethanol production has provided an assured market and better prices for farmers growing maize.
Potential Concerns
Some may question the sustainability of relying heavily on maize for ethanol production, considering its multiple uses, including food and animal feed.
- Buffer Stocks
- Maintained before diverting rice for ethanol production
- National Food Security Act (NFSA)
- Requirements met before diverting rice
- Maize Output
- 55 million tonnes projected for 2025-26
- Ethanol Supply Year 2024-25
- 13.1 million tonnes of maize used for ethanol production
- Surplus Rice with FCI
- 3.18 million tonnes
- Foreign Exchange Savings
- Over Rs 1.90 lakh crore from 2014-15 to May 2026
- Carbon Emissions Cut
- Over 930 lakh metric tonnes
- Additional Earnings for Farmers
- Over Rs 1.6 lakh crore