- Broken rice ethanol plan aims to cut PDS share to 10%
- Ethanol blending, FCI rice shift and supply chain focus
Hyderabad, March 24: The Centre is preparing a major policy shift under the Broken Rice Ethanol Plan. It plans to reduce broken rice allocation in the public distribution system from 25 per cent to 10 per cent. This move will free about 90 lakh tonnes annually for the ethanol sector, Food Secretary Sanjeev Chopra said.
The proposal will soon go to the Cabinet. Meanwhile, the decision comes as global crude oil prices have surged by around 40 per cent in the last three weeks. Therefore, the government is looking to strengthen domestic ethanol supply and reduce dependence on imports.
Chopra said ethanol blending in petrol has already reached 20 per cent. This marks a sharp rise from 1.5 per cent in 2013. As a result, the country saved over Rs 1.63 lakh crore in foreign exchange. It also cut crude imports by 277 lakh metric tonnes since 2014.
Policy shift to support ethanol sector and ensure supply
The government is now focusing on boosting ethanol availability in the market. It is also considering raising blending levels beyond 20 per cent. In addition, mixing ethanol with diesel and promoting flex fuel vehicles are under review. Decisions on these steps are expected soon.
Chopra said the Broken Rice Ethanol Plan would address a long standing issue. In 2023, a weak sugar harvest and concerns over rice output led to restrictions on feedstock supply to distilleries. This, in turn, affected the industry.
“Climate change is a reality. We need to make sure the supply chain is not disrupted. A steady supply of broken rice to the ethanol sector will help ensure that,” he said.
FCI rice allocation, maize push and production growth
At present, broken rice forms 25 per cent of grains given free to about 80 crore people under the food scheme. Under the new plan, this share will drop to 10 per cent. The surplus from 360 to 370 lakh tonnes distributed each year will be auctioned to ethanol producers and others.
From next year, the government will stop supplying whole grain rice from Food Corporation of India stocks to distilleries. Instead, broken rice from the revised scheme will serve as a steady feedstock.
Chopra also urged distilleries to speed up lifting of current allocations. Of the 52 lakh tonnes set aside this year, only 21 lakh tonnes has been lifted so far. Another 20 lakh tonnes remains available, but the discounted price is valid only until June 30.
Meanwhile, maize is being promoted as an alternative feedstock. The agriculture ministry is developing high yield varieties that can produce five to six tonnes per hectare. Around 40 per cent of ethanol supply already comes from grain sources, mainly maize.
India’s ethanol production capacity has grown significantly. It increased from 420 crore litres in 2013 to nearly 2,000 crore litres now. Notably, 650 crore litres were added in the last three years.
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