1 week ago
Priyank Kharge Questions Centre’s Subsidised Rice Ethanol Policy
Priyank Kharge is questioning how the government uses some of its rice for making ethanol.
The government buys rice from farmers using taxpayers’ money.
It also pays to store and transport that rice.
Kharge says the rice is then sold to ethanol makers at a price lower than what it cost to acquire.
He wants to know who benefits from this arrangement.
He also questions why the government buys ethanol from producers at higher prices.
Ethanol is blended with petrol, but Kharge asks whether this has made petrol cheaper for people.
He says the government should clearly explain the economic and public-interest effects of the policy.
Karnataka Home Minister Priyank Kharge questioned the Centre’s policy of selling subsidised rice to ethanol producers.
He said rice procured with taxpayers’ money is reportedly sold at about 40% below its acquisition cost.
Kharge highlighted additional government costs for storing and transporting the procured grain.
He questioned whether foodgrains meant for food security are being diverted to support expanded ethanol production capacity.
Kharge asked whether ethanol blending has lowered petrol prices or affected vehicle mileage and maintenance costs.
- Who
- Priyank Kharge, Karnataka’s Home Minister, questioned the Centre’s ethanol policy.
- What
- He challenged the sale of government-procured rice to ethanol producers at subsidised prices and questioned the broader economics of ethanol blending.
- Where
- The statement was issued in Bengaluru and concerned the Centre’s policy in India.
- When
- Tuesday, according to the statement.
- Why
- Kharge said the policy may divert foodgrains from food security while creating unclear benefits for taxpayers and consumers.
Key facts
- Speaker
- Priyank Kharge, Karnataka Home Minister
- Policy questioned
- Selling rice procured through the Food Corporation of India to ethanol producers
- Reported discount
- About 40% below the rice’s acquisition cost
- Government costs
- Procurement, storage and transportation of the grain
- Food-security concern
- Kharge questioned diverting foodgrains toward ethanol production
- Consumer concerns
- He asked whether ethanol blending lowers petrol prices or affects vehicle mileage and maintenance costs
Quotes
Priyank Kharge
Karnataka Home Minister criticizing the Centre’s ethanol policy
“If grain is supplied at a lower price and ethanol is subsequently purchased from the same industry at a higher price, what is the actual benefit to the ordinary consumer?”
thehansindia.com
“India’s ethanol arithmetic simply does not add up”
thehansindia.com
Sources
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