AIDA Suggest Govt. of India To Reconsider The Ban on FCI Rice for Ethanol Production

Maize (Corn)

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The government has aimed for a 15% ethanol blending target in the ongoing Ethanol Supply Year of 2023-24. However, the All-India Distillers’ Association (AIDA) expresses concerns about achieving this goal due to certain government restrictions. These include limitations on sugar mills to provide ethanol from sugarcane juice and B Heavy molasses, and capping total sugar diversion at 17 lakh MT. AIDA has proposed various suggestions to the government. They suggest reconsidering the blanket ban on FCI rice for ethanol production, allowing FCI to supply rice in limited quantities based on buffer stocks and food security norms. They also highlight the potential to enhance ethanol production capacity by utilizing a balanced mix of rice and maize, as ethanol output from rice is significantly higher than from maize (45% vs. 38%).