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The FCI has been conducting e-auctions for rice sales to private traders since last July to manage the surplus inventory. | Image: Wikimedia Commons
The government on Thursday permitted the sale of up to 2.3 million tonnes of rice from Food Corporation of India (FCI) stocks to grain-based ethanol distilleries, reversing a ban imposed last year.
The food ministry, as per a directive, has allowed ethanol producers to participate in e-auctions and purchase rice between August and October 2024 under the Open Market Sale Scheme (OMSS).
This decision comes as the government grapples with surplus rice stocks exceeding 540 lakh tonnes, prompting efforts to create storage space for the upcoming harvest.
Ethanol makers can purchase rice through weekly e-auctions. Purchases are subject to ethanol allocation by oil manufacturing companies.
The government had halted rice sales for ethanol production in July 2023. The ban coincided with restrictions on non-basmati white rice exports.
The FCI has been conducting e-auctions for rice sales to private traders since last July to manage the surplus inventory.
This move signals a shift in the government’s stance on using foodgrains for biofuel production as it balances food security concerns with the need to manage excess stocks.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 29 2024 | 10:16 PM IST
