Punjab's rice millers are worried about ethanol producers prioritizing maize

26-Feb-2026 01:56 PM

Chandigarh. Rice millers in Punjab have a large stock of 100% broken rice, and ethanol producers were expected to purchase it. However, ethanol producers are now prioritizing the purchase of maize over rice, increasing the concerns and difficulties for rice millers.

It is noteworthy that the government has fixed the price of rice for ethanol producers at Rs. 2370 per quintal, while the price of maize is only Rs. 1700-1800 per quintal. This naturally leads ethanol producers to shift their focus towards maize. Furthermore, the government has also maintained a high selling price for ethanol produced from maize.

It is worth noting that the ethanol industry has been the largest buyer of 100% broken rice for the past few years, but now the use of maize is rapidly increasing. While the ethanol industry has found a cheaper and better alternative to rice, the rice industry is facing increasing difficulties. The price of 100% broken rice in the open market is ₹1900-2000 per quintal. As a result, the ethanol industry is lifting very less quantity of rice from the central pool.

The Vice President of the Punjab Rice Industry Association says that the government should reduce the selling price of 100% broken rice to ₹1900 per quintal and rice millers should be allowed to purchase the broken rice of the central pool present in the mill premises.

During custom milling, 100% broken rice is also produced along with 10%, 15% and 25% broken rice, which the Food Corporation sells to ethanol manufacturers at a fixed price.