Archive · 19 Jul 2026
Centre Allocates 72 Lakh Tonnes Rice for Ethanol
The Indian government has set aside 72 lakh tonnes of rice from its stocks to make ethanol, which is a type of fuel.
This is more than last year's allocation.
They are also selling an extra 55 lakh tonnes of broken rice through online auctions.
Ethanol is mixed with petrol to make it burn cleaner.
The government wants to use more ethanol to reduce the need for imported oil.
However, some people are worried that using food grains for fuel might affect food supplies, especially if there are problems with rice or maize crops due to bad weather.
The Centre has allocated 72 lakh tonnes of rice for ethanol production in the 2026-27 supply year.
An additional 55 lakh tonnes of 100% broken rice will be sold through e-auction.
Ethanol produced from FCI rice will be procured at ₹58.5 per litre, and from broken rice at ₹64 per litre.
The government aims to support higher ethanol blending targets and reduce dependence on imported fossil fuels.
Critics raise concerns about the impact on food security due to the diversion of food grains for ethanol production.
- Who
- The Indian government and the Food Corporation of India (FCI)
- What
- Allocation of 72 lakh tonnes of rice for ethanol production and additional 55 lakh tonnes of broken rice for sale through e-auction
- When
- Ethanol Supply Year 2026-27 (November 2026 to October 2027)
- Where
- India
- Why
- To support higher ethanol blending targets and reduce dependence on imported fossil fuels
Government Support for Ethanol Production
Concerns Over Food Security
Ethanol Production
Government Support for Ethanol Production
The government is promoting ethanol production to reduce dependence on fossil fuels and support higher blending targets.
Concerns Over Food Security
Critics argue that diverting food grains for ethanol could impact food security, especially during monsoon deficits.
Economic Viability
Government Support for Ethanol Production
The allocation of rice at fixed prices makes ethanol production more economically viable for distilleries.
Concerns Over Food Security
Opponents worry that the fixed prices might not be sustainable in the long term and could lead to market distortions.
- Rice Allocated for Ethanol
- 72 lakh tonnes
- Additional Broken Rice for Sale
- 55 lakh tonnes
- Ethanol Supply Year
- 2026-27 (November 2026 to October 2027)
- Procurement Price for Ethanol from FCI Rice
- ₹58.5 per litre
- Procurement Price for Ethanol from Broken Rice
- ₹64 per litre
- Current Ethanol Blending Target
- 20%
- Annual Ethanol Production
- Nearly 2,000 crore litres
- Ethanol Needed for 20% Blending
- 1,050-1,100 crore litres per year