Ethanol Manufacturers Lift Only 64 Percent of Government Rice

07-Feb-2026 04:15 PM

New Delhi: Although the central government is trying to reduce its surplus rice stock by increasing its use in ethanol production, it does not seem to be achieving the desired success.

Only 64 percent of the rice quota allocated to ethanol manufacturers for the November-January quarter of the current 2025-26 marketing season was lifted.

It is noteworthy that for this quarter, oil marketing companies (OMCs) had placed orders for the supply of 78 crore liters of ethanol, for the production of which 17.40 lakh tonnes of government rice were estimated to be required. However, only 11.20 lakh tonnes, or 64 percent, of the government-allocated rice could be lifted.

It is worth noting that for the entire 2025-26 marketing season (November-October), the Food Corporation of India (FCI) has allocated a total quota of 52 lakh tonnes of rice for ethanol manufacturers.

According to industry analysts, many distillers in several states are not showing much enthusiasm in purchasing government rice because sufficient stock of rice is available at cheaper prices in the domestic (open) market.

There was a significant difference in the lifting of government rice across various states. Uttar Pradesh saw an 86 percent uplift, while Rajasthan managed only 22 percent. Rice lifting remained weak in Telangana, Chhattisgarh, and Odisha.