Open Market Sale Scheme for Rice Aids in Boosting Ethanol Production

27-Jul-2026 05:54 PM

New Delhi: Industry observers state that the government's Open Market Sale Scheme (OMSS)—by enabling distilleries to access rice stocks—will significantly help boost the production of grain-based ethanol and facilitate the achievement of the target to blend 20 percent ethanol with petrol.

The Central Government has implemented a revised Standard Operating Procedure (SOP) for the sale of rice to ethanol distilleries for the 2026-27 marketing season (November–October); this move will also assist in utilizing rice stocks that have been held in government warehouses for years. According to trade analysts, while older rice stocks previously had limited commercial (industrial) utility, they have now become a vital raw material for ethanol production, allowing for their more effective utilization.

Notably, earlier this month, the government fixed the price of rice supplied to ethanol manufacturers at ₹2,320 per quintal until October 31, 2026, with the rate set to increase to ₹2,390 per quintal starting November 1, 2026. The Ministry of Food has earmarked 7.2 million tonnes (72 lakh tonnes) of rice from Food Corporation of India (FCI) stocks for sale to ethanol distilleries; the corresponding figure last year was 5.5 million tonnes (55 lakh tonnes).