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Centre Approves Additional 2.8 Million Tonnes of FCI Rice for Ethanol Production.

National | Dated: 17 May 2025

In May 2025, the Ministry of Consumer Affairs, Food and Public Distribution (MoCAF&PD) approved an additional 2.8 million tonnes (MT) of rice from the Food Corporation of India (FCI) for ethanol production under the Ethanol Blended Petrol (EBP) Programme.

🎯 Key Highlights:

  • - This move aligns with the Government of India’s broader goal to enhance energy security, reduce reliance on fossil fuel imports, and promote cleaner and sustainable fuel alternatives.
  • - With this additional sanction, the total allocation for the Ethanol Supply Year (ESY) 2024–25 (December 2024 to October 2025) has increased to 5.2 million tonnes, up from the previously approved 2.4 million tonnes.
  • - The reserve price of FCI rice for ethanol production has been reduced by ₹550 per quintal, bringing it down to ₹2,250, compared to the earlier price of ₹2,800 per quintal.

💡 Other Important Facts:

  • (i) Ethanol distilleries can procure up to 24 lakh tonnes at the revised rate, while State Governments and Corporations may purchase up to 12 lakh tonnes without e-auction.
  • (ii) With a conversion rate of 470 litres per tonne, the entire 5.2 million tonnes of rice could generate approximately 2.45 billion litres of ethanol.
  • (iii) The Ethanol Blended Petrol (EBP) Programme, launched in 2003, has gained momentum especially since 2014. India has already achieved its 20% ethanol blending (E20) target in petrol ahead of the 2025 deadline and now aims to reach 30% ethanol blending by 2030.

📚 Test Your Knowledge:

How many million tonnes of additional FCI rice did the Centre recently approve for ethanol production?

Correct Answer: 2.8 million tonnes

🚀 Quick Recap: