Rising Use of Maize in Ethanol Production Impacts Rice Utilization

13-Mar-2026 08:20 PM

Chandigarh. Punjab's rice industry is deeply concerned and distressed by the rapidly increasing use of maize in ethanol production.

Rice millers in the state are currently holding a massive stockpile of 100% broken rice; however, ethanol manufacturers are failing to procure it adequately. This stock of broken rice has become a major burden for the millers.

The millers state that the problem is not limited to the existing stock alone but also extends to future production. During the milling of paddy, broken grains are inevitably generated alongside whole rice grains.

While whole rice is typically procured by the government or purchased by traders and exporters, broken rice has historically been bought in large quantities by ethanol producers. However, with the rapid surge in the use of maize for ethanol manufacturing, the demand for broken rice has now significantly weakened.

The Central Government has increased the procurement price of broken rice for ethanol manufacturers, fixing it at ₹2,370 per quintal, whereas the prevailing market rate for maize currently stands at a mere ₹1,700–₹1,800 per quintal.