GEMA urges government to provide adequate rice to distilleries

07-Jan-2025 04:35 PM

The Grain Ethanol Manufacturers Association (GEMA) has called on the Indian government to release surplus rice stocks held by the Food Corporation of India (FCI) to the ethanol industry, which is struggling with rising raw material costs, particularly maize.

In a formal memorandum submitted to an advisor to the Prime Minister, GEMA highlighted the increasing financial strain on grain-based distilleries due to the high price of raw materials, threatening the profitability of ethanol production.

GEMA emphasized that the success of India's ethanol-blended petrol program, which has already seen investments exceeding Rs 40,000 crore, is crucial for both the national economy and the rural sector.

To maintain the growth of the grain-based ethanol industry and ensure its sustainability, GEMA urges the government to intervene by providing rice from surplus stocks at a price lower than the market rate, which would alleviate some of the industry's financial burden. Without this support, the continued viability of ethanol production could be at risk.