The government has revised the price of rice under the Open Market Sale Scheme (OMSS), focusing on managing its surplus stock.

For ethanol manufacturers, the price of rice has been fixed at Rs 2250 per quintal. This move is part of the government's efforts to reduce rice stockpiles while ensuring availability at subsidized rates for various sectors.

Under the OMSS, rice will be sold at Rs 2800 per quintal to private parties and cooperatives, while small traders will also purchase it at the same price from Food Corporation of India (FCI) warehouses.

However, state governments and provincial corporations will receive rice at a lower rate of Rs 2250 per quintal, bypassing the weekly e-auction process.

Cooperative organizations affiliated with the central government, such as NAFED and NCCF, will get rice at Rs 2400 per quintal for retail sale through stores, mobile vans, and online platforms under the "Bharat Brand."

The price revision is particularly significant for ethanol manufacturers, who will benefit from the lower cost of rice.

The rice allocated for the production of ethanol in the 2024-25 tender phase is expected to produce up to 110 crore liters of ethanol, while the ethanol price for SFG (Special Food Grains) remains unchanged at Rs 58.50 per liter.

This price reduction aims to ease the financial burden on distilleries and boost ethanol production, aligning with the government's broader goal of addressing surplus rice stocks.