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Source: The post is based on the article “FCI stops rice supply for ethanol production amid concerns over crop” published in Business Standard on 25th July 2023.
What is the News?
Food Corporation of India (FCI) has stopped the supply of rice from its depots for ethanol production.
Why has the FCI stopped the supply of rice for ethanol production?
Government had said the ban was aimed at containing inflation and to ensure adequate availability in the domestic market.
What will be the impact of this ban?
This FCI ban on supply of rice for ethanol production could impact India’s ambitious ethanol blending petrol (EBP) programme.
For instance, about 100 distilleries across the country depend on rice from the FCI for conversion into starch, which is processed to make ethanol.
– Dual-feed distilleries use sugarcane during the season and grains during the off-season. Both of them will get impacted due to the ban.
