India plans to free up 90 lakh tonnes of broken rice a year for ethanol
India wants to cut the share of broken rice in its food scheme from 25% to 10% and redirect the freed volume into ethanol production.
India’s government is preparing a cabinet proposal to cut the share of broken rice in grain distributed under the public food scheme from 25% to 10%. Food Secretary Sanjeev Chopra said the change would free up about 90 lakh tonnes of broken rice annually for the ethanol sector and create a more stable feedstock base for distilleries.
The move comes at a time when global crude oil prices have jumped by about 40% in the past three weeks. Chopra said India’s ethanol blending in petrol has already reached 20%, up from just 1.5% in 2013. According to him, that shift has saved the country more than ₹1.63 lakh crore in foreign exchange and reduced crude imports by 277 lakh metric tonnes since 2014.
The government is now looking beyond current blending volumes and trying to push more ethanol into the market. Chopra said policymakers are actively considering raising the blending limit above 20%, mixing ethanol with diesel and promoting flex-fuel vehicles, with decisions expected soon.
Speaking at the All India Distillers Association conference, Chopra said the broken-rice proposal is intended to solve a long-standing supply problem. In 2023, a poor sugar harvest and fears over rice production forced the government to restrict feedstock supplies to distilleries, hurting the industry. He said climate change is now a hard reality and the ethanol supply chain needs a steadier flow of raw material.
At present, broken rice accounts for 25% of the grain distributed free to about 80 crore people under the food scheme. Under the new plan, that share would be reduced to 10%. The extra broken rice released from the 360-370 lakh tonnes distributed each year would be sold through auction to ethanol makers, animal feed producers and other buyers. A trial run has already been completed in five states.
From next year, the government also plans to stop supplying whole-grain rice from Food Corporation of India stocks to distilleries. Broken rice from the redesigned food scheme would replace it as a more reliable year-round feedstock. Chopra simultaneously urged distilleries to speed up lifting of current FCI allocations: of the 52 lakh tonnes set aside this year, only 21 lakh tonnes have been picked up so far, while another 20 lakh tonnes remain available at a discounted price until June 30.
Maize is being promoted as the second major alternative feedstock, especially varieties that can be grown on rain-fed land without irrigation. The agriculture ministry is developing high-yield maize varieties capable of producing five to six tonnes per hectare. Chopra said about 40% of ethanol supply already comes from grain-based sources, mainly maize, and India’s ethanol production capacity has expanded from 420 crore litres in 2013-14 to nearly 2,000 crore litres today, including 650 crore litres added in just the last three years.