Govt may soon start rice supply to grain based distilleries

The government is expected to recommence the supply of rice to ethanol-producing companies soon after it was temporarily suspended last month.

According to the information shared on ET NOW’s Twitter account, government sources have disclosed that a meeting took place between government officials and distilleries to address the rice supply concern. Assurances have been given to restart the rice supply to these companies from the following week.

The Food Corporation of India (FCI) had halted rice supply to distilleries based on directives from the central authorities. The government, however, is taking a phased approach to resolving this issue by conducting meetings with distilleries in groups. Supply will resume in tranches and based on the requirements of individual distilleries.

It’s noteworthy that the Food Corporation of India has currently provided 14 lakh tonnes of rice, which is less than the targeted 34 lakh tonnes for this year.


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