The central government has kept unchanged the price of rice supplied by the Food Corporation of India to produce ethanol.
For the ongoing financial year, the price will remain ₹2,000 per quintal, the Ministry of Consumer Affairs, Food and Public Distribution said in a statement on Saturday. The government fixed this price for the just-concluded financial year, setting the price of ethanol generated from rice available with FCI at ₹56.87/litre for the year.
To boost the agricultural economy and reduce import dependence, the Centre has fixed a 10 per cent blending of fuel-grade ethanol with petrol by 2022 and 20 per cent blending by 2025.
Apart from rice, in the current sugar season 2020-21, more than 20 LMT of excess sugar is estimated to have been diverted for ethanol production. In the past three sugar seasons, sugar mills and distilleries generated a revenue of about ₹22,000 crore revenue from the sale of ethanol to oil marketing companies, the statement said.
Syndicated news from The Hindu Business Line