**Executive Summary**
This document is a response to Unstarred Question No. 2961, posed in Lok Sabha on December 17, 2025, regarding the impact of food crop diversion towards the Ethanol Blending Programme. It details the allocation and utilization of rice and maize for ethanol production during Ethanol Supply Years (ESY) 2024-25 and 2025-26. The response also addresses measures to maintain food and feed security.
**Key Points / Main Content**
* **Rice Allocation for Ethanol Production:**
* FCI allocates surplus rice for ethanol production after meeting buffer stock and Targeted PDS/OWS requirements through the Open Market Sale Scheme (Domestic) [OMSS (D)].
* Allocation and lifting quantities for ESY 2024-25:
* Allocated: 52 LMT
* Lifted: 31.83 LMT
* Allocation and lifting quantities for ESY 2025-26:
* Allocated: 52 LMT
* Lifted: 4.58 LMT (up to 11.12.2025)
* **Maize Utilization for Ethanol Production:**
* Allocation and utilization quantities for ESY 2024-25:
* Allocation: 477.8 crore litres
* Utilized: 125.75 LMT
* Allocation and utilization quantities for ESY 2025-26:
* Allocation: 478 crore litres
* Utilized: 125.78 LMT
* Maize production increased to about 434 LMT in 2024-25, sufficient for ethanol, poultry, and other uses.
* **Feed Availability in the Poultry Sector:**
* The poultry feed industry adopts rice bran, broken rice, bajra, and wheat offal to maintain feed availability.
* **Food Security Measures:**
* The government prioritizes food security and monitors/reviews foodgrain availability.
* Surplus FCI rice is used for ethanol production only after buffer stock and Targeted PDS/OWS requirements are met.
* The government is studying the feasibility of using sweet sorghum as an alternative feedstock for ethanol production.
**Impact Analysis**
**Stakeholder: Ethanol Distilleries**
* **Impact:** Receive allocated quantities of FCI rice for ethanol production, contributing to the Ethanol Blending Programme.
* **Action Required:** Lift the allocated rice quantities from FCI as per the ESY.
**Stakeholder: Poultry Sector**
* **Impact:** Affected by the diversion of maize for ethanol production; the industry must adopt alternative ingredients.
* **Action Required:** Continue adopting domestically available ingredients like rice bran, broken rice, bajra, and wheat offal to mitigate any impact on feed availability.
**Stakeholder: Food Corporation of India (FCI)**
* **Impact:** Responsible for allocating and selling surplus rice for ethanol production after fulfilling buffer stock and welfare scheme needs.
* **Action Required:** Maintain buffer stocks and provision for the Targeted PDS and OWS.
**Stakeholder: Government (Department of Food & Public Distribution)**
* **Impact:** Responsible for maintaining food security and monitoring the availability of foodgrains.
* **Action Required:** Regularly monitor/review the availability of foodgrains in the country and maintain buffer stocks. Additionally, continue studying the feasibility of alternative feedstocks like sweet sorghum.
Key Entities Referenced
Ethanol Blending Programme: The central program that promotes the blending of ethanol with gasoline, impacting food crop diversion.
Food Corporation of India (FCI): The government agency responsible for procuring and distributing food grains, including allocation for ethanol production.
Ministry of Consumer Affairs, Food & Public Distribution: The ministry responsible for overseeing food security, public distribution, and policies related to ethanol blending.
Public Distribution System (PDS): The government's food security system, the rice of which is considered in the context of potential diversion for ethanol production.
Open Market Sale Scheme (Domestic) [OMSS (D)]: Mechanism for the Food Corporation of India to sell excess stock of rice to distilleries for ethanol production.
GOVERNMENT OF INDIA
MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION
LOK SABHA
UNSTARRED QUESTION NO. 2961
TO BE ANSWERED ON 17Ttl DECEMBER, 2025
IMPACT OF FOOD DUE TO CROP DIVERSION TOWARDS ETHANOL
BLENDING PROGRAMME
2961. SHRI BALWANT BASWANT WANKHADE:
Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC
DISTRIBUTION be pleased to state:
(a): the details and the quantity of rice allocated by Food Corporation of India (FCI)
for ethanol production since 2024-25 ;
(b): whether any Public Distribution System (PDS) rice has been diverted for ethanol
production and if so, the details thereof;
(c): the details and the quantity of maize allocated for ethanol production and its
impact on feed availability in the poultry sector;
(d): whether an inter-ministerial review mechanism exists to assess the social and
economic impacts of foodgrain diversion and if so, the details thereof; and
(e): the details of the measures taken by the Government to mitigate resultant food or
feed security risks?
ANSWER
MINISTER OF STATE FOR MINISTRY OF CONSUMER AFFAIRS,
FOOD & PUBLIC DISTRIBUTION
(SHRIM ATI NIMUBEN JAYANTIBHAI BAMBHANIYA)
(a) & (b): The quantity of FCI rice allocated to ethanol distilleries for production of
ethanol and quantity of FCI rice lifted by ethanol distilleries for Ethanol Supply Year
(ESY) 2024-25 and ESY 2025-26 are given as under:Ethanol Allocated Quantity of FCI rice
Supply Year Quantity of lifted by distilleries
(ESY) FCI rice
(in LMT)
(in LMT)
2024-25 52 31.83
2025-26 52 4.58 (upto 11.12.2025)
The Food Corporation of India (FCI), after maintaining buffer stocks and making
provision for meeting the requirements of the Targeted PDS and Other Welfare Schemes
(OWS), sells only excess stocks out of Central Pool under Open Market Sale Scheme
(Domestic) [OMSS (D)]. The accumulated surplus stock of rice is allocated by FCI as
feedstock for production of ethanol.
(c): The quantity of Maize utilized/ to be utilized as per supply/allocation of maize based
ethanol during ESY 2024-25 and ESY 2025-26 is as under:
Ethanol Supply / Quantity of Maize
Supply Year Allocation of utilized/ to be utilized
(ES Y) Maize based
(in LMT)
ethanol
(Nov-Oct)
(in cr. litres)
2024-25 477.8 125.75
2025-26 478 125.78
As per the final estimates of production of foodgrains for the year 2024-25,
production of Maize has increased substantially to about 434 LMT. The quantity of Maize
is sufficient to cater the demand of ethanol production, poultry and other purposes. To
maintain feed availability, the poultry feed industry is also adopting other domestically
available ingredients such as Rice bran, Broken Rice, Bajra and Wheat offal.
(d) & (e): The Government accords the highest priority to food security in the country.
Department of Food & Public Distribution regularly monitors/reviews the availability offoodgrains in the country and maintains the buffer stock of wheat and rice. Surplus FCI rice
is being used for ethanol production, only when available in excess after maintaining buffer
stocks and making provision for meeting the requirements of the Targeted PDS and Other
Welfare Schemes (OWS).
Maize has emerged as the biggest feedstock for ethanol production and sufficient
maize is available in the country even after utilization of maize as a feedstock for
ethanol production.
Government is conducting study for feasibility of sweet sorghum as an alternate
feedstock for production of ethanol to diversify the feedstock base for ethanol production.
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