★ The central government is planning to redirect a large portion of FCI’s broken rice to the ethanol industry starting next year.

★ It has been proposed to reduce the share of broken rice in the Public Distribution System (PDS) from 25% to 10%. This will make around 9 million tonnes of broken rice available annually for ethanol production. Supply of whole rice from FCI to distilleries will be discontinued, and the surplus broken rice will be sold via auction to ethanol producers, animal feed players, and other industries.

★ India has already achieved 20% ethanol blending in petrol. The next targets include increasing blending beyond 20%, introducing ethanol blending in diesel, and promoting flex-fuel vehicles.

★ This move is expected to reduce crude oil imports, save foreign exchange, and ensure a stable ethanol supply.

★ Out of the 5.2 million tonnes allocated this year, only 2.1 million tonnes has been lifted so far. Maize is also being promoted as an alternative feedstock.

★ Overall, the government is shifting its focus from foodgrain supply towards strengthening the ethanol economy.