FCI rice-sale rules aim to support ethanol blending while cushioning retail rice prices
India has increased FCI rice allocations for distilleries to 7.2 million tonnes for the 2026–27 ethanol year. The move supports the 20% ethanol-blending target and stock liquidation, while Bharat-brand sales could help contain consumer rice prices; private buyers may face higher procurement costs.
India’s revised rice-sale rules allocate larger FCI stocks to ethanol distilleries, supporting 20% blending and inventory liquidation. The policy may stabilise retail rice prices via Bharat brand but could raise private procurement costs and reduce non-basmati export availability.
Why this matters
FCI's expanded distillery allocation reinforces India's recent decision to keep its ethanol-blending push intact rather than offer lower-blend petrol at select outlets.
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