Last week, the government lowered the issue price of rice to be sold to distilleries for making ethanol to ₹22.50/kg, as against the economic cost of ₹39.75/kg, effectively subsidizing ₹17.25/kg from public exchequer
Oil marketing companies this week are expected to float tender under Cycle 3 (C3) for the supply of about 110 crore litres of ethanol during ESY2024-25 (November-October) which has been restricted only to ethanol to be produced from the subsidised rice of the Food Corporation of India (FCI) to be sold at ₹22.50/kg. The government has also fixed maximum quota of 24 lakh tonnes (lt) for FCI to sell to ethanol distilleries.
