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Informist, Thursday, Aug 29, 2024

--Govt allows ethanol distilleries to take part in FCI rice auctions 

--Govt: Ethanol plants can lift up to 2.3 mln tn rice at FCI auctions 

--CONTEXT: FCI holds weekly open mkt sale of rice via e-auctions 

MUMBAI – The Centre has allowed ethanol distilleries to participate in Food Corporation of India's weekly rice auctions, the Department of Food and Public Distribution said in a notification today. The distilleries can buy a maximum 2.3 mln tn of rice from the auctions, it said.

The distilleries will be allowed to participate in the e-auctions from Aug-Oct and purchase the rice at the final auction rate every week, according to the notification. The rice can be lifted as per the allocations by oil marketing companies to concerned distilleries for producing ethanol, it said.

In July 2023, the government stopped grain-based distilleries from producing ethanol using rice procured from FCI. However, given the surplus availability of rice with FCI, it has been allowed to be used as feed stock for ethanol again.

Rice stocks with the Centre as on Aug 1 were the highest since 2005 at 32.8 mln tn. Rice stocks have risen nearly 35% on year and are far above the Jul-Sep buffer norm of 13.5 mln tn – operational stock of 11.5 mln tn and strategic reserve of 2 mln tn. Apart from rice, FCI has 19.00 mln tn of unmilled paddy.  End

Reported by Taniva Singha Roy

Edited by Ashish Shirke

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