The Odisha government is planning to provide broken rice for ethanol production as more farmers shift to paddy cultivation, spurred by an increase in the procurement rate, officials reported on Tuesday, reported PTI.
The state’s main ethanol plant, located in Bargarh district, processes both rice grain and rice straw to produce ethanol for fuel blending. Additionally, smaller ethanol plants across the state use grain feedstock, with the Food Corporation of India (FCI) allocating surplus rice to these facilities for the ethanol-blended petrol programme.
A proposal on this initiative was discussed at the first meeting of the Inter-Ministerial Committee for procurement ahead of the Kharif 2025-26 season, held on Monday. The meeting, chaired by Deputy Chief Minister KV Singh Deo, who oversees the Agriculture and Farmer Empowerment Department, focused on creating a roadmap for post-paddy procurement management.
The government plans to complete the procurement of Kharif crops by the end of November. “The government is planning to supply broken rice for ethanol production,” an official stated.
The meeting also covered the distribution of free rice to underprivileged families through various welfare schemes, as well as rice exports to other countries.
The increase in the paddy procurement price to ₹3,100 per quintal has encouraged many farmers to take up paddy cultivation, resulting in a 29% year-on-year rise in the registration of new farmers, officials noted.
To manage the paddy post-procurement, the meeting agreed on building additional warehouses, a project to be carried out by the FCI, the Cooperation Department, and the State Warehousing Corporation. The effective management of surplus rice, after FCI procurement, is also seen as crucial.
It was also decided that permanent ‘mandis’ (markets) will be established in coordination with various departments. The roadmap will also include plans to open more rice mills and upgrade existing mills to hybrid models.
