The Food Corporation of India sold rice to ethanol distilleries at about 40% below its average acquisition cost between June 2025 and June 2026, the Union government told Parliament on Tuesday.
The rice was sold at a price of Rs 2,250 per quintal to Rs 2,320 per quintal. The average acquisition cost was Rs 3,720 per quintal in the financial year 2024-’25 and Rs 3,889 per quintal in 2025-’26 based on data available so far, the Ministry of Food and Public Distribution told the Rajya Sabha.
Between November 2026 and June 2027, rice will be sold to ethanol distilleries for Rs 2,390 per quintal, it added.
The public sector organisation dispatched 6.3 million tonnes of rice worth Rs 14,596 crore to ethanol producers during the 12-month period.
At 844,141 tonnes, Haryana received the largest allocation of rice during the period. It was followed by Uttar Pradesh at 838,645 tonnes, Punjab and Himachal Pradesh combined at 658,952 tonnes, West Bengal at 584,672 tonnes, and Madhya Pradesh at 432,485 tonnes.
The government said that there is no subsidy granted to ethanol manufacturers for procuring rice for producing ethyl alcohol.
The ministry said that during the one-year period, the authorities found two cases of Food Corporation of India’s rice meant for ethanol production being diverted and action...
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