Centre says FCI rice diversion to ethanol follows food-security needs

The government said 44.2 LMT of surplus FCI rice was supplied to ethanol distilleries through June 30 in ESY 2025-26 only after welfare, food-security and buffer-stock requirements were met. It also highlighted increased maize use for ethanol.

— Filed Wed, 29 Jul, 2026, 20:00 IST · Source Business Today · Latest · Updated

The Centre said 44.2 LMT of surplus FCI rice was allocated to ethanol distilleries in ESY 2025-26 only after food-security, welfare and buffer-stock needs were met. It said rice diversion has not affected retail food inflation and highlighted rising maize use.

Why this matters

No related recent signals were provided; the update centers on FCI's allocation of surplus rice to ethanol only after welfare, food-security and buffer-stock requirements are met.

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