No proposal to resume subsidised rice sale for ethanol production: Official

The government has no proposal to resume sale of subsidised rice to grain-based distilleries for the production of ethanol, Food Secretary Sanjeev Chopra said.

"Since July last year, rice has not been diverted for ethanol production. There is no proposal as of now to revisit that policy," Chopra told reporters on Thursday.

He was responding to questions on whether the government plans to resume the sale of subsidised rice for ethanol in the near future amid reports of likely fall in sugar production in the 2024-25 season (October-September).

The rice sale for ethanol makers was discontinued for various reasons, including apprehensions about domestic output and high retail prices, and economic unviability, he said.

On the impact on investments on grain-based distilleries, Chopra said, "This is not a policy which is cast in stone. This policy will be renewed... Maize is being encouraged for ethanol production."

As of now, there is a huge jump in ethanol made from maize. About 50 crore litres of ethanol made from maize has been supplied in the 2024-25 supply year, he said.

The industry which has put up grain-based distilleries should use maize for ethanol production, he added.

On likely fall in sugar output next season, the secretary said, "The government is aware and concerned."

However right now, it is too early to predict any kind of sugar production figures for next season. "We will get to know about the production during August for the 2024-25 season."

"Reservoir levels in Maharashtra and Karnataka are reportedly a little less than previous years. We are cautious to ensure we have higher closing stock of sugar this season."

In any eventuality, the stock can be used not only for domestic consumption but also for diversion for ethanol production, he added.

The secretary further said the increase in fair and remunerative price (FRP) of sugarcane for the next season has been a good signal to farmers to increase the sowing.

The government has increased sugarcane FRP to Rs 340 per quintal for 2024-25 season from Rs 315 per quintal this season.