Government Allocates 7.2 Million Tonne Rice Quota for Ethanol Manufacturers

08-May-2026 08:22 PM

New Delhi. Given the massive stocks available in the Central Pool and the ongoing procurement of new stocks, the government has been compelled to accelerate the pace of rice liquidation. Initially, a quota of 5.2 million tonnes of rice was allocated for ethanol manufacturers (distillers); this quota has now been increased by 2 million tonnes, bringing the total allocation to 7.2 million tonnes.

The price of this Food Corporation of India (FCI) rice has been fixed at ₹2,320 per quintal, a rate that will remain effective until June 30, 2026. Priority will be accorded to the utilization of broken and aged rice for ethanol production.

Under the new revised policy announced by the government, FCI rice at concessional rates will be made available to distillers only if they hold a valid contract with Oil Marketing Companies (OMCs) for the supply of ethanol. Distillers may contact the Food Corporation's regional offices directly to procure rice and may lift one or multiple varieties of rice as per their specific requirements.

Rice will be sold strictly on an advance payment basis, leaving no scope for credit or outstanding dues. All expenses incurred subsequent to the lifting of the rice from the warehouse must be borne by the distillers. Upon verification of the payment, a release order will be issued to the distillers within 24 hours, and they will be required to lift the rice within the subsequent 10 working days.