News Capsule: New Revised Policy Issued for Ethanol Production from FCI Rice
08-May-2026 02:17 PM
News Capsule: New Revised Policy Issued for Ethanol Production from FCI Rice
★ Old and broken rice will be prioritized for ethanol production.
★ The sale price of FCI rice has been fixed at Rs 2320 per quintal across India, applicable from 1 November 2025 to 30 June 2026.
★ The total allocation limit has been set at 7.2 million tonnes, including an additional allocation of 2 million tonnes over the previously allocated 5.2 million tonnes.
★ Distilleries will be eligible to procure FCI rice only if they possess a valid ethanol supply agreement with OMCs (Oil Marketing Companies).
★ Distilleries will be able to directly approach the respective FCI divisional offices for lifting rice and can procure supplies in single or multiple tranches as per requirement.
★ The entire sale process will be conducted strictly on a pre-payment basis. No credit sale will be permitted.
★ Transportation cost from FCI depots to distilleries will have to be borne by the concerned distilleries.
★ Distilleries will have to place indents along with advance payment.
★ Release Orders (ROs) will be issued within 24 hours after payment verification.
★ Distilleries must lift the allocated rice within 10 working days from the issuance of the Release Order.
★ Rice supply through railway rakes will also be facilitated wherever required.
★ Provision has also been made for lifting operations during holidays and non-working days to ensure smooth supply movement.