Archive · 26 Jun 2025
India Turns Surplus Rice into Ethanol to Boost Fuel Program
India has a lot of extra rice.
To use it, they are making more ethanol (a type of fuel) from it.
This helps them get rid of the extra rice and also helps them make fuel.
Because of good weather, they grew too much rice.
India is also selling more rice to other countries.
This is happening because they had too much and also want to mix more ethanol in their gasoline to help the environment and lessen costs.
India is using record rice volumes to produce ethanol.
This shift is a response to excess rice stockpiles and aims to support the ethanol blending program.
Ample monsoon rains have led to a surplus rice harvest.
The Food Corporation of India has allocated a record amount of rice for ethanol production.
Rice exports are increasing after restrictions were lifted, though there are limits to further increases.
- Who
- The Indian government, the Food Corporation of India (FCI), rice farmers, and ethanol manufacturers.
- What
- India is using surplus rice for ethanol production.
- When
- The current marketing year ending in June 2025 and the coming crop year from October.
- Where
- India
- Why
- To reduce excess rice stocks and support the ethanol blending program to lessen oil imports and lower emissions.
Government/Ethanol Industry
Rice Exporters/Manufacturers
Economic Viability
Government/Ethanol Industry
Using surplus rice for ethanol supports energy security and emission reduction.
Rice Exporters/Manufacturers
The price of rice-based ethanol is insufficient to motivate increased production and rice utilization.
- Ethanol Blend Target
- 20% by 2025/26
- FCI Rice Allocation for Ethanol
- 5.2 million metric tons
- Current FCI Rice Reserves
- 59.5 million metric tons
- Rice Export Increase (2025)
- 25% to 22.5 million tons
- Rice Harvest (Current Year)
- 146.1 million tons
- Gasoline Ethanol Blend (Last year)
- 14.6%
