The supply of rice for ethanol was also stopped

Mumbai: In a decision taken by the Food Corporation of India (FCI), it has stopped the supply of rice for the production of ethanol. The decision taken last week may give a setback to the Indian government's efforts to reduce the country's fuel import bill by blending ethanol in petrol this year.

The situation has become challenging for around 100 distilleries in the country that depend on FCI for rice. Rice is procured from FCI and converted into starch and processed for ethanol.

Distilleries that depend on both sugarcane and grains will be partially affected by this decision, said government sources.

The price of rice has gone up due to the reduction in the supply of rice in the current year in the country. The government is making every effort to control the price of rice. In a recent decision, the government has banned the export of non-basmati rice.

The government is concerned that the rice production in the current kharif season will be affected due to insufficient rainfall at some places and flood conditions in some areas. The government is worried about rising prices of rice in the event of a fall in production.

Keeping in mind the upcoming state assemblies and Lok Sabha elections, the government wants to keep inflation under control, especially food prices.

Sources further said that the FCI has written to their divisional offices instructing the distilleries to immediately stop the supply of rice and to return the deposits from the distilleries from which they have been received.

Under the Centre's National Policy on Biofuels, the government plans to blend 20 percent ethanol in petrol by FY 2025-26. Due to which the country's forex reserve is expected to reduce import dependency for fuel in addition to savings.

FCI supplies rice to ethanol producers at Rs 20 per kg. Which is much less than the current market price of Rs 30. According to an estimate, 15 lakh tonnes of rice is supplied annually by FCI for ethanol.

As on July 1 of the current year, the government had a stock of 4.10 crore tonnes of rice. Which was less than the buffer requirement of 1.35 crore tonnes in that period.

Store managers were forced to sell only one bag of rice per household in America

India's ban on rice exports has made it difficult for American citizens, especially non-resident Indians, to get rice. In view of the panic buying of rice by Indians living in the US, store managers have been forced to impose limits on the supply of rice and only a certain amount of rice is being given per person, the report said. Pictures showing that rice stocks are empty in many stores in America have also flowed on social media. Not only this, customers have also lined up for rice. Notices were also placed outside the stores stating that only one bag of rice per family would be given, the report said.