Use of broken rice for ethanol production is not impacting inflation: Govt
New Delhi, July 29
The diversion of surplus broken rice to produce ethanol is not impacting food inflation, as ethanol production is allowed only after maintaining adequate buffer stocks and meeting the requirements under the National Food Security Act and other welfare schemes, the Parliament was informed on Wednesday.
In a written reply to a question in the Lok Sabha, Minister of State for Food Nimuben Jayantibhai Bambhaniya said that after maintaining buffer stocks and providing for requirements under the NFSA, the government sells only excess rice from the Central Pool under the Open Market Sale Scheme, which is then allocated as feedstock for ethanol production.
She also stated that the inclusion of maize as a feedstock for ethanol production has helped to provide an assured market and better prices to the country's farmers growing the crop.
The minister highlighted that the third advance estimates of foodgrain production for 2025-26 project India's maize output at 55 million tonnes, which is sufficient to meet the demand for ethanol production, feed for poultry and cattle as well as other purposes.
"To maintain feed availability, the poultry feed industry is also adopting other domestically available ingredients such as rice bran, broken rice, bajra and wheat offal," she added.
The minister further stated that in the ethanol supply year 2024-25, which ended in November, around 13.1 million tonnes of maize was used for ethanol production, while the quantity of surplus rice with the Food Corporation of India (FCI) was around 3.18 million tonnes.
India produces ethanol from rice, maize and sugarcane, with maize accounting for the largest share in recent years, surpassing sugarcane.
The government has also issued a factsheet earlier this month to explain that the Ethanol Blended Petrol (EBP) Programme has emerged as a key pillar of India's energy transition and biofuel strategy, which has saved India's foreign exchange by reducing crude oil imports, lowered greenhouse gas emissions, and strengthened farmers' incomes through new market opportunities.
From 2014-15 up to May 2026, the ethanol blending programme has resulted in a saving of over Rs 1.90 lakh crore in foreign exchange by substituting 310 lakh metric tonnes of imported crude oil and has generated additional earnings for farmers of more than Rs 1.6 lakh crore. Besides, it has cut carbon emissions of over 930 lakh metric tonnes, the factsheet highlighted.
— IANS
Reader Comments
Good to see ₹1.9 lakh crore saved in forex and 930 lakh tonnes carbon reduction! But let's be honest - broken rice diversion for ethanol while millions go to bed hungry? The buffer stock argument sounds good on paper but ground reality is different. We need more transparency in allocation and distribution.
As someone working in the renewable energy sector, this is a step in the right direction. Ethanol blending reduces our dependence on Middle East oil and helps farmers. But the government should also promote second-generation ethanol from agricultural waste to avoid any food vs fuel debate. We have enough crop residue to make it work.
Okay but 13.1 million tonnes of maize for ethanol vs 3.18 million tonnes rice? Maize is a staple in many poor households! This is classic government spin - they keep saying only 'surplus' is used but who decides what's surplus? In a country where food inflation is already high, this whole policy needs rethinking.
Interesting to see India's ethanol strategy evolving. The ₹1.9 lakh crore forex savings is impressive. But from an environmental perspective, are we accounting for water usage in maize cultivation? India's water stress is a serious issue. Maybe focus more on sugarcane and second-gen ethanol?
I'm all for ethanol blending but this government is selectively quoting data. The fact sheet mentions savings from 2014-15 to May 2026? That's nearly 12 years! And where's the inflation impact analysis on staple grains? My mother tells me rice and atta prices have gone up significantly. Common sense says diverting
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