
In stark contrast to recent years characterized by shortages and export restrictions, India is diverting record amounts of rice for the manufacturing of ethanol as it struggles with an unprecedented stockpile that is predicted to grow much larger with the arrival of the next season's harvest.
India, the greatest producer and exporter of rice in the world, is contributing to the reduction of exploding stockpiles by progressively repurposing rice for the creation of ethanol. Despite a drop in the production of sugarcane, the conventional source of biofuel, this action is also guaranteeing that the nation's aggressive ethanol blending targets stay on course.
A record 5.2 million metric tons of rice, or almost 9% of all rice exports anticipated worldwide for the 2024–2025 marketing year ending in June, have been set aside by the Food Corporation of India (FCI) for the manufacturing of ethanol. In sharp contrast, last year's ethanol production used fewer than 3,000 tons of FCI rice.
A Challenge of Surplus
According to Arushi Jain, Joint Secretary of the Grain Ethanol Manufacturers Association, if the government lowers the price of rice or increases the procurement price for ethanol, even more rice could be diverted to the manufacturing of ethanol.
According to the Food and Agriculture Organization, India harvested a record 146.1 million tons of rice this crop year, which ends in June. This amount greatly exceeded the country's expected domestic need of 120.7 million tons.