The Central government has slashed the price of rice from its buffer stock for ethanol producers by 20%, dropping it from ?2,800 to ?2,250 per quintal within just 10 days. This move aims to support the ethanol industry, which was reluctant to purchase rice at higher prices, and also benefits state governments and public sector corporations buying rice directly from the Food Corporation of India.
The price reduction aligns with growing demands from states like Karnataka and Tamil Nadu for additional rice allocations at affordable rates. Karnataka had earlier requested extra rice for its Anna Bhagya Lakshmi scheme but faced initial resistance from the Centre. However, by August 2024, the Centre agreed to supply rice at ?28 per kg after increased state-level advocacy.
Union Minister Pralhad Joshi announced the revision under the Open Market Sale Scheme (Domestic) for 2024–25, emphasizing its dual focus on food security and sustainable energy. He hailed the policy as a step toward empowering states and fostering a greener, stronger future.