Centre plans to cut broken rice share in PDS, boost ethanol feedstock supply – The Times of India

The Centre plans to move a Cabinet note to reduce the proportion of broken rice distributed under the public distribution system (PDS) from 25% to 10% in a bid to ensure a steady supply of feedstock for ethanol production, Food Secretary Sanjeev Chopra said on Tuesday, as reported PTI.Addressing the All India Distillers’ Association (AIDA) conference, Chopra said the proposal could make about 90 lakh tonnes of broken rice available annually for the ethanol industry, helping provide year-round supply stability.“Climate change is a reality. We need to make sure the supply chain is not disrupted. A steady supply of broken rice to the ethanol sector will help ensure that,” he said.Currently, nearly 80 crore beneficiaries receive foodgrains under the PDS, where broken rice accounts for up to 25% of distribution. The proposed change would lower this share to 10%, releasing surplus stocks from the roughly 360-370 lakh tonnes of rice distributed every year.The excess broken rice would be auctioned to ethanol producers, animal feed manufacturers and other users. A pilot initiative has already been carried out in five states.Chopra also indicated that from the next ethanol supply year, whole-grain rice from the Food Corporation of India (FCI) would no longer be supplied to distilleries. Broken rice from the revamped food distribution system is expected to become the primary grain-based feedstock.“Looking further ahead, from the next ethanol supply year, whole FCI rice will no longer be available for the sector. In its place, we are moving toward the supply of broken rice,” he said, adding that the shift would improve grain quality for beneficiaries, ease storage and logistics pressures, and provide a predictable supply pipeline for the ethanol industry.The proposal comes amid rising global crude oil prices and the government’s push to expand ethanol blending in petrol to cut import dependence. Chopra said blending levels have reached 20%, up from 1.5% in 2013, helping save more than Rs 1.63 lakh crore in foreign exchange and reduce crude oil imports by 277 lakh metric tonnes since 2014.He noted that ethanol production capacity has increased from 420 crore litres in 2013-14 to nearly 2,000 crore litres now, with about 650 crore litres added in the past three years.The government is now focusing on demand-side measures, including deliberations on raising blending limits beyond 20%, exploring ethanol blending in diesel and promoting flex-fuel vehicles, he said.Chopra said supply disruptions in 2023, triggered by a weak sugar harvest and concerns over rice output, had highlighted the need for a more stable feedstock strategy.He also urged distilleries to accelerate lifting of existing FCI rice allocations. Of the 52 lakh tonnes earmarked for the current ethanol supply year, only 21 lakh tonnes have been lifted so far, while another 20 lakh tonnes remain available at discounted rates until June 30.On alternative feedstocks, he said maize, particularly rain-fed varieties, is being promoted to encourage crop diversification away from paddy cultivation. Around 40% of ethanol supply currently comes from grain-based sources, mainly maize, with efforts underway to develop high-yield varieties producing five to six tonnes per hectare.Referring to Brazil’s experience following the 1973 oil shock, which eventually led to ethanol blending levels of about 30%, Chopra said the current global energy situation presents an opportunity for India to strengthen its biofuel strategy.“Every challenge carries within it an opportunity. This is an important moment for us to revisit and strengthen our ethanol blending programme,” he said.AIDA president Vijendra Singh said the industry was prepared to go beyond the E20 milestone and called for a gradual increase in blending mandates, introduction of flex-fuel vehicles capable of running on 100% ethanol, promotion of ethanol-based cooking stoves and exploration of blending in diesel.P S Ravi, Director (Downstream) at the Federation of Indian Petroleum Industry, also urged the ethanol sector to support expansion of the biofuel programme beyond petrol blending, including biodiesel use in diesel, development of ethanol as a cooking fuel, sustainable aviation fuel pathways and feedstock expansion.Deputy Agriculture Commissioner Mehraj A S and Robert Papa, agriculture attaché at the Embassy of Brazil in New Delhi, were among those present at the conference.