FCI sells 1.3 mn tn rice for ethanol production till July 10 in 2022-23

State-owned FCI has sold 13.05 lakh tonnes of rice for conversion into ethanol till July 10 in the current marketing year ending November and has earned a revenue of Rs 2,610 crore, the government said on Wednesday.

"Supply of surplus stock of rice from central pool by FCI for conversion into ethanol was started in the year 2020-21," Minister of State for Food and Consumer Affairs Sadhvi Niranjan Jyoti said in a written reply to Lok Sabha.

According to the data furnished in the reply, the revenue generated by FCI by selling surplus rice for production of ethanol stood at Rs 98 crore in 2020-21, 2136 crore in 2021-22 and Rs 2610 crore till July 10 in 2022-23 ethanol supply year (December-November).

The lifting of rice stood at 0.49 lakh tonnes in 2020-21, 10.68 lakh tonnes in 2021-22 and 13.05 lakh tonnes till July 10 in 2022-23 supply year.

The government has been implementing Ethanol Blended Petrol (EBP) Programme wherein oil marketing companies (OMCs) sell petrol blended with ethanol up to 10 per cent. Ethanol is being produced mainly by sugar mills from sugarcane crop.

This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from April 2019 to promote the use of alternative and environment-friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give a boost to the agriculture sector.

The government has advanced the target of 20 per cent ethanol blending in petrol from earlier 2030 to 2025-26.