The FCI has been conducting e-auctions for sale of rice to private traders since last July to manage surplus inventory. | Image: Wikimedia Commons
The government on Thursday allowed the sale of up to 2.3 million tonnes of rice from the stocks of the Food Corporation of India (FCI) to grain-based ethanol distilleries, reversing a ban imposed last year.
The Food Ministry, as per a directive, has allowed ethanol producers to participate in e-auctions and purchase rice between August and October 2024 under the Open Market Sales Scheme (OMSS).
The decision comes at a time when the government is grappling with a surplus rice stock of over 540 lakh tonnes, prompting efforts to create storage space for the next crop.
The ministry said: “A maximum of 23 lakh tonnes of ethanol may be allowed to be transported to ethanol distilleries.”
Ethanol producers can purchase rice through weekly electronic auctions. Purchases are subject to ethanol allocation by oil producing companies.
The government had suspended sales of rice for ethanol production in July 2023. The ban coincided with restrictions on exports of non-basmati white rice.
The FCI has been conducting e-auctions for sale of rice to private traders since last July to manage surplus inventory.
The move signals a shift in the government’s stance on using grain for biofuel production as it balances food security concerns with the need to manage excess stocks.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 29, 2024 | 10:16 PM IS
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