The Central Government has decided to sell rice to ethanol manufacturers at a new minimum reserve price of Rs 2800 per quintal, up from Rs 2000 per quintal, which had been previously criticized and caused controversy.

This move aims to address the large surplus of rice with the Food Corporation of India (FCI). The decision sets the same price for rice sales to both ethanol manufacturers and state governments, bringing clarity and reducing potential disputes.

However, ethanol manufacturers will likely only be content with this price if the price of ethanol produced from grains is also increased.

Currently, the sale price of ethanol for oil marketing companies (OMCs) is Rs 58.50 per liter, but there has been no official decision on whether this price will be adjusted.

Additionally, the price of rice for stockists, small traders, and state government corporations has been set at Rs 2800 per quintal.

State governments and their associated agencies can purchase rice directly from FCI depots without participating in weekly e-auctions under the Open Market Sale Scheme (OMSS), whereas traders can only access rice through the auction system.

For the public, rice will be available through government outlets like NAFED, NCCF, and Kendriya Bhandaar at a lower price of Rs 2400 per quintal, under the Bharat Brand. This price is also applicable to community kitchens.