In a relief to grain-based ethanol producers, the government has made relaxations in certain provisions regarding the reserve price of rice under the Open Market Sale Scheme (Domestic) (OMSS (D)) policy for the year 2024-25. The government has revised the provisions for the sale of rice stocks in excess of buffer stocking norms under OMSS (D) for the year 2024-25, which will remain effective until March 31, 2025, or until further orders, whichever is earlier.
The government has set the reserve price at Rs 2,800 per quintal (fixed) pan India for the sale of rice to ethanol distilleries for ethanol production.
According to the letter issued on January 7 to FCI Chairman and Managing Director, it mentions that the supply of FCI rice can be affected by ethanol distilleries in both deficit and surplus states all through the year. Further, with regard to FCI rice supplied for ethanol production, inter-alia the following modalities shall be adopted: (a) Sale of FCI rice for ethanol production will only be allowed to distilleries registered with OMCs as suppliers of ethanol. (b) Distilleries along with a copy of signed contract with OMCs regarding supply of ethanol may approach the FCI depot of their choice. (c) FCI will allocate the rice as per the quantity of ethanol allocated to distilleries in their contract with OMCs. (d) Distilleries to provide a copy of certificate issued by OMCS regarding supply of ethanol. (e) The OMCs would be furnishing details of quantity of ethanol produced from FCI rice, received at respective depot every month.
In August 2024, the government lifted a ban on rice sales imposed in 2023 on ethanol distilleries by allowing the purchase of 23 lakh tonnes (during Aug-Oct 2024) from the central pool grain stocks. The rice was to be sold through e-auction under the OMSS of the FCI. However, there were no takers for rice under the OMSS from ethanol manufacturers, citing a lack of financial viability.
Furthermore, the reserve price for the sale of rice to private parties and cooperatives/cooperative federations through e-auction has been set at Rs 2,800 per quintal. The sale of rice from FCI depots to small private traders, entrepreneurs, or individuals is also set at Rs 2,800 per quintal. The sale of rice to state governments and state-owned corporations, without participating in the e-auction, will be set at Rs 2,800 per quintal.
Sale of rice to state governments and state owned corporations without participating in e-auction set at Rs 2800 per quintal. Sale of rice to Central cooperative organizations, like NAFED/NCCF/ Kendriya Bhandar (retail sale) for sale under ‘Bharat’ brand through own stores/mobile vans and/or E-commerce/big chain retailers only has been set at Rs 2,400 per quintal. Similarly, the sale of rice to community kitchens will also be priced at Rs 2,400 per quintal.
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Also read: GEMA requests government to issue surplus FCI rice to grain ethanol industry
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Any body may be allowed to purchase at this price