FCI stops rice supply for ethanol production amid concerns over crop

Move could hit petrol blending programme; many distilleries may face closure, say industry players

In a move that could impact India’s ambitious ethanol blending petrol (EBP) programme, the Food Corporation of India (FCI) has stopped the supply of rice from its depots for ethanol production since last week.

About 100 distilleries across the country that depend on rice from the FCI for conversion into starch, which is processed to make ethanol, are staring at tough times. Dual-feed distilleries, which use sugarcane during the season and grains during the off-season, could also take a partial hit, industry players said.

Sources said that while the FCI hadn’t officially given any reason for its decision, the rising prices of