With a growing number of farmers turning to paddy cultivation following a hike in the procurement price, the Odisha government is planning to supply broken rice for ethanol production, officials said on Tuesday.
The state’s primary ethanol production facility, located in Bargarh district, uses both rice grains and rice straw to produce ethanol for fuel blending. In addition, several smaller plants across Odisha are already utilising grain-based feedstock, supported by surplus rice allocations from the Food Corporation of India (FCI) under the Ethanol Blended Petrol (EBP) programme.
The proposal to use broken rice for ethanol was discussed during the first meeting of the Inter-Ministerial Committee on Kharif procurement for the 2025–26 season, held on Monday, reported PTI.
Chaired by Deputy Chief Minister K.V. Singh Deo, who also heads the Agriculture and Farmer Empowerment Department, the meeting focused on post-procurement strategies and roadmap planning for managing paddy after purchase. The government aims to begin Kharif crop procurement by the end of November.
“The government is planning to supply the broken rice for the ethanol production,” an official said, reported PTI. Discussions also covered the distribution of free rice to poor families under various welfare schemes and the potential for rice exports.
The official noted a 29% year-on-year increase in new farmer registrations, attributed to the state government’s paddy procurement rate of Rs. 3,100 per quintal. This shift has encouraged more farmers to take up paddy cultivation.
To manage the expected increase in paddy procurement, the committee resolved to enhance storage capacity by constructing additional warehouses. This initiative will be undertaken by FCI, the Cooperation Department, and the State Warehousing Corporation.
“While after procurement of a certain amount of rice by FCI, the surplus rice management is also very crucial,” the official added.
The meeting also approved the construction of permanent model ‘mandis’ (agricultural markets) in collaboration with multiple departments. As part of the long-term roadmap, the state plans to open new rice mills and upgrade existing ones into hybrid processing units.
