Parliament Question: Foodgrains used for Ethanol Production

GOVERNMENT OF INDIA MINiSTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION LOK SABHA UNSTARRED QUESTION NO. 1746 TO BE ANSWERED ON 29Tll JULY, 2026 FOODGRAINS USED FOR ETHANOL PRODUCTION 1746 SHRI AZAD KIRTI JHA:

SHRI ABHISHEK BANERJEE:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION be pleased

to state:

(a) the details and the quantity of rice, maize, damaged foodgrains and other foodgrains used or diverted for ethanol production during the last five years and the current year, Commodity, State, year and agency-wise;

(b) whether any assessment has been conducted on the impact of ethanol demand on maize prices, rice stocks, food inflation, cattle-feed prices and food-security stocks;

(c) if so, the findings thereof, State and commodity-wise; and

(d) whether any ceiling has been fixed on use of foodgrains for ethanol production during periods of high food inflation or low buffer stock and if so, the details thereon ANSWER MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRIMATI NIMUBEN JAYANTIBHAI BAMBHANIYA)

(a): Ethanol Distilleries procure Maize and Broken Rice as feedstock for production of ethanol mainly through open market. Government of India allows sale of excess stock of rice to ethanol distilleries under Open Market Sale Scheme (Domestic) (ON4SS (D)) through Food Corporation of India (FCI) for ethanol production under Ethanol Blended Petrol (EBP) Programme. Details ofquantity of rice supplied by FCI for ethanol production; and quantity of maize and damaged foodgrain/ broken rice based on ethanol supplied by distilleries to Oil Marketing Companies

(OIVICs), Ethanol Supply Year (ESY) (November – October) –wise is given as below:

Ethanol Supply Year(ESY) -wise quantity of surplus FCI rice, maize & damaged food grains used for ethanol production Feedstock used for ethanol production (in LMT) ESY ESY I ESY I ESY I ESY ESY Feed Stock 2025 2020- 12 021- 12 022- 12 023- 2024- 26(upto 21 1 22 1 23 F 24 25

30.6.2026) Surplus FCI Rice E o.5 1 10.7 13.9 0 31.8 44.2 Maize o I o F 8.3 1 75.4 F 131.1 67.9 Damaged Food Grains/ broken 8.7 5.o 1 7.1 1 25.7 1 17.9 9.9 rice(b) & (c): Government, after maintaining buffer stocks and making provision for meeting the requirements under National Food Security Act (NFS A) and Other Welfare Schemes (OWS), sells only excess stock of rice out of Central Pool under Open Market Sale Scheme (Domestic) [C)MSS

(D)]. The accumulated surplus stock of rice is allocated as feedstock for production of ethanol.

There is no impact of diversion of surplus FCI rice on retail food inflation.

Inclusion of Maize as a feedstock for ethanol production has helped in providing assured market to maize farmers and ensuring better prices to them. As per the third advanced estimates of production of foodgrains for the year 2025-26, production of Maize is estimated at 550 LIVIT. The quantity of Maize is sufficient to cater the demand of ethanol production, poultry, cattle feed and other purposes. To maintain feed availability, the poultry feed industry is also adopting other domestically available ingredients such as Rice bran, Broken Rice, Bajra and Wheat offal.(d): FCI rice, only when available in excess, is diverted for ethanol production, after meeting the requirements of the National Food Security Act (NFSA), Other Welfare Schemes (OWS) and maintaining buffer stock. The Government, keeping in view the aspect of food security has earlier stopped supply of FCI rice for ethanol production w.e.f 14.08.2023 during ESY 2022-23. Later on, in view of availability of excess stock of FCI rice, the Government again allocated FCI rice for sale to ethanol distilleries for ethanol production during ESY 2024-25 and 2025-26.

Diversification of feedstock base for ethanol production by the Government, such as sugarcane juice, B-heavy molasses, C-heavy molasses, maize, damaged food grains, surplus FCI rice(only when available in excess) has reduced dependence on any single feedstock(crop) and has supported agricultural diversification ##888