On Friday, BRS leader B. Parthasaradhi Reddy urged the government to resume supplying broken and surplus rice through the Food Corporation of India (FCI) to grain-based ethanol producers, a supply that was halted in July 2023.
Addressing the Rajya Sabha during Zero Hour, Reddy highlighted that around 131 grain-based ethanol plants have been set up nationwide over the past four years, with an investment of Rs 25,000 crore, thanks to the government’s biofuel policy.
He noted that the sudden suspension of FCI rice supply has caused significant disruption in the industry.
“The shortage of feedstock is putting the entire industry at risk and could hinder the Centre’s ambitious E-20 target for 2025,” Reddy warned.
The Bharat Rashtra Samithi (BRS) leader also pointed out that although the government has raised the rates for broken and damaged rice and maize from Rs 21 to Rs 29 per kg, the adjustment in ethanol prices has not kept pace, making the industry financially unsustainable.
Reddy called on the government to permit maize imports under a tariff relief quota, similar to what is allowed for other feed industries.
He reminded that before 2018, the Centre relied entirely on ethanol from molasses for fuel blending. The introduction of a new biofuel policy in June 2018 aimed to promote the use of damaged food grains for ethanol production.
Reddy stressed that to achieve the E-20 target by 2025, the government will need approximately 1,000 crore litres of ethanol. The 131 grain-based ethanol plants have the capacity to produce 600 crore litres, which covers 60 percent of the country’s total requirement.
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