BRS Leader Calls for Immediate Restoration of FCI Rice Supply for Ethanol Industry

BRS leader B Parthasaradhi Reddy has called on the government to restore the supply of broken and surplus rice to grain-based ethanol producers. The supply was halted in July 2023, creating significant industry challenges. Reddy emphasized the urgent need for feedstock to meet India's ethanol production goals.

BRS leader B Parthasaradhi Reddy on Friday urged the government to restore the supply of broken and surplus rice through Food Corporation of India (FCI) for grain-based ethanol makers, which was halted in July 2023.

Speaking during Zero Hour in Rajya Sabha, Reddy highlighted the establishment of 131 grain-based ethanol plants across the country, backed by a Rs 25,000 crore investment inspired by the government's biofuel policy.

He noted the abrupt cessation of FCI rice supply has sent shock waves through the industry, posing a threat to the Centre's ambitious E-20 target by 2025 due to a shortage of feedstock.

Reddy pointed out that while the government has raised rates for broken and damaged rice and maize from Rs 21 to Rs 29 per kg, the ethanol price adjustment remains insufficient, rendering the industry economically unviable.

He urged the government to permit maize imports under a tariff relief quota, similar to other feed industries.

Reddy reminded that before 2018, ethanol production relied solely on molasses. The 2018 biofuel policy encouraged the use of damaged food grains for ethanol production.

The BRS leader emphasized that 1,000 crore litres of ethanol are needed to meet the E-20 target by 2025, while the current capacity of 131 grain-based ethanol plants is 600 crore litres, covering 60 per cent of the demand.

(With inputs from agencies.)