Procure more rice or fix higher rate for rice-based ethanol: Chhattisgarh CM to Centre

Ahead of paddy harvesting, Chhattisgarh Chief Minister Bhupesh Baghel on Wednesday demanded that the Centre either procure more rice from the state or fix a higher rate for rice-based ethanol to protect the interest of farmers.

The chief minister called on Union Food Minister Ram Vilas Paswan and discussed the matter in detail as procurement in the state is set to kickstart in November.

"Ours is mainly a rice producing state. We contributed 24 lakh tonne of rice last year to the central pool. We have requested the Centre to take 32 lakh tonne from our state this year," Baghel told reporters after the meeting.

In the meeting, the chief minister was told that the central pool has surplus stock of 250 lakh tonne and does not have enough space to keep more grain, the sources said.

However, Paswan assured the state chief minister of addressing their concern and directed the Food Secretary to find some solution.

Besides, Baghel discussed ways to promote ethanol production from rice straws.

He informed in the meeting that the current rate fixed for rice-based ethanol is much lower at Rs 47 per litre in comparison to sugarcane-based ethanol rate of Rs 59 per litre. It is not financially feasible for farmers to divert their crop for ethanol production at present, sources said.

Baghel further said if the Centre fixes a higher rate for rice-based ethanol, it will encourage setting up of ethanol factories in the state. In such a situation, the state will not pressure the Centre to procure more rice as the surplus will be diverted for ethanol making, the sources added.

The chief minister also informed that the state produces special rice in black, red and green colour and it is not keen to give this rice to the central pool. Instead, it wants to promote its exports to ensure better price to farmers.