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Bhubaneswar: Amid a boom in paddy cultivation by farmers following a hike in the procurement rate in the state, the Odisha government is planning to supply broken rice for the production of ethanol.

The main ethanol plant located in Bargarh district uses both rice grain and rice straw to produce the item for fuel blending, officials said on Tuesday.

This apart, the state also has smaller ethanol plants, utilising grain feedstock, with the Food Corporation of India (FCI) allocating surplus rice to them for the ethanol blended petrol initiative.

The proposal was discussed threadbare at the first meeting of the Inter-Ministerial Committee for procurement for the Kharif 2025-26 season on Monday. The meeting, chaired by Deputy Chief Minister K V Singh Deo, who holds Agriculture portfolio, discussed the preparation of a roadmap for post-paddy purchase management, officials said.

The government has planned to procure the Kharif crops by the end of November and plans are afoot to supply the broken rice for the ethanol production. “The meeting also discussed distribution of free rice to poor families through various schemes and export to other countries,” a senior official said.

Due to the procurement of paddy at Rs 3,100 per quintal by the state government, many farmers have shifted to paddy cultivation. Therefore, there has been a 29 per cent year-on-year increase in the registration of new farmers, he added.

To ensure proper utilisation of paddy after procurement, the meeting resolved to build more warehouses, the official said.

“This will be done by FCI, Cooperation Department, and State Warehousing Corporation. However, after procurement of a certain amount of rice by FCI, the surplus rice management is also very crucial,” he said.

It was decided in the meeting that permanent model ‘mandis’ will be constructed in coordination with various departments. “Accordingly, the roadmap is being prepared. It will include opening more rice mills and upgrading existing mills to hybrid mills,” the official added.