India allocates 7.2 million tons FCI rice for ethanol 2026-27
India is stepping up its green game by setting aside 7.2 million tons of FCI rice for ethanol production in 2026-27, a big jump from the 2025-26 supply year.
The goal? Boost homegrown biofuel, hit even higher gasoline blending targets beyond the current 20%, and rely less on imported oil.
This also helps keep the ethanol supply steady if sugarcane or maize crops take a hit due to bad monsoons.
India sets broken rice price ₹2,000
To make things easier for ethanol producers, the government will auction off 5.5 million tons of broken rice online at a starting price of ₹2,000 per quintal (reviewed every quarter).
Distilleries can buy reserved FCI rice at ₹2,390 per quintal.
Ethanol made from these stocks will be sold to oil companies at set rates (₹58.5 per liter from FCI rice and ₹64 per liter from broken rice), helping push India's renewable energy goals forward.