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Informist, Tuesday, Mar. 24, 2026

 

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--Food secy:Oil crisis a chance to recalibrate our ethanol blending programme
--CONTEXT: Food Secretary Chopra at 1st annual distillers' conclave 
--Food secy:Brazil used ethanol blending to navigate first oil shock in 1973 
--Food secy: Ethanol supply comfortable, need to increase demand 
--Food secy: Distillers need to expedite FCI rice lifting for ethanol output 
--Food secy:5.2 mln tn FCI rice earmarked to make ethanol, 2.1 mln tn lifted 
--Food secy: To improve PDS rice quality, ramp up 10% broken rice milling 
--Food secy:Hope 9 mln tn 100% broken rice is available for end-users next yr

 

NEW DELHI - The ongoing oil crisis is an opportunity to recalibrate India's ethanol blending programme and further reduce dependence on crude oil imports, Food Secretary Sanjeev Chopra said. The programme has helped substituted 27.7 million tonnes of crude oil with ethanol and saved more than INR 1.63 trillion in foreign exchange during 2014-25, he added. 

 

Recollecting how Brazil made use of the first oil shock in 1973 to implement ethanol blending in petrol, Chopra said India must use surging crude oil prices to strengthen ethanol blending. 

 

"They have a very advanced system...so the pass would be to Brazil now," Chopra said at All India Distillers' Association's 1st annual distillers' conclave. Brazil dispenses both E100 and E30 blends. 

 

India has a comfortable ethanol supply and now the focus is on boosting demand, Chopra said. The government is exploring ethanol blending in diesel and promoting flex-fuel vehicles to increase the use of ethanol in green mobility. 

 

Chopra asked distillers to expedite lifting rice from the Food Corp. of India for ethanol production. Distillers have only lifted about 2.1 million tonnes of FCI rice against the allocation of 5.2 million tonnes earmarked for ethanol production in 2025-26 (Nov-Oct), Chopra said. 

 

"I think you are aware that this particular rate that is being offered for FCI rice is only valid till Jun. 30 and it is likely to change post Jun. 30," he added. 

 

From 2026–27 ethanol supply year, the government will not supply 25% broken rice from FCI. "From the next ethanol supply year, the supply of FCI rice would not be available. What would be available would be (100%) broken rice," Chopra said. 

 

The government has improved milling quality of rice from 25% broken content to 10% on a pilot basis in five states. Chopra said he hopes that the 10% broken rice milling scheme will be ramped up across the country next year. This should result in availability of 9 million tonne of fully broken rice on an auction basis to various end-users, including ethanol, alcohol, and feed industry, he added. 

 

The improved milling quality rice will offer better quality rice to beneficiaries of the public distribution system, assure steady feedstock supply for industry, and tackle storage issues for FCI, he added. End

 

Reported by Afra Abubacker

Edited by Akul Nishant Akhoury

 

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