Government Aims to Reduce Broken Rice Allocation in Public Distribution System
The Indian government is set to revise its public distribution system (PDS) by reducing the proportion of broken rice distributed from 25% to 10%. This change aims to secure a consistent supply of feedstock for the ethanol industry, according to Food Secretary Sanjeev Chopra. The proposed adjustment could release approximately 90 lakh tonnes of broken rice annually, bolstering the ethanol sector and ensuring supply stability amidst rising global crude oil prices.
Impact on Public Distribution System
Currently, around 80 crore beneficiaries receive food grains through the PDS, where broken rice constitutes a significant portion of the distribution. The government’s proposal to cut this share to 10% is expected to free up surplus stocks from the annual distribution of approximately 360-370 lakh tonnes of rice. This surplus broken rice will be auctioned to various sectors, including ethanol producers and animal feed manufacturers. A pilot initiative has already been implemented in five states, showcasing the potential benefits of this shift. By reallocating broken rice, the government aims to enhance the efficiency of the PDS while simultaneously supporting the growing ethanol industry.
Transition to Broken Rice for Ethanol Production
Chopra announced that starting from the next ethanol supply year, whole-grain rice from the Food Corporation of India (FCI) will no longer be supplied to distilleries. Instead, broken rice from the revamped food distribution system will become the primary feedstock for ethanol production. This transition is expected to improve the quality of grains available to beneficiaries and alleviate storage and logistical challenges. Chopra emphasized the importance of ensuring a reliable supply chain for the ethanol sector, particularly in light of climate change and its potential disruptions.
Government’s Ethanol Strategy and Achievements
The proposed changes come as the Indian government seeks to expand ethanol blending in petrol to reduce reliance on crude oil imports. Chopra highlighted that blending levels have surged from 1.5% in 2013 to 20% currently, resulting in significant foreign exchange savings and a reduction in crude oil imports. Ethanol production capacity has also seen remarkable growth, increasing from 420 crore litres in 2013-14 to nearly 2,000 crore litres today. The government is now exploring further demand-side measures, including raising blending limits and promoting flex-fuel vehicles, to enhance the biofuel strategy.
Future Directions and Industry Collaboration
Chopra noted that recent supply disruptions, caused by a weak sugar harvest and concerns over rice output, have underscored the need for a stable feedstock strategy. He urged distilleries to expedite the lifting of existing FCI rice allocations, as only a fraction of the earmarked rice has been utilized so far. The government is also promoting alternative feedstocks, such as maize, to diversify crop cultivation. Industry leaders, including AIDA president Vijendra Singh, expressed readiness to exceed current blending milestones and called for increased mandates and the introduction of flex-fuel vehicles. The collaboration between the government and the ethanol sector is crucial for advancing India’s biofuel agenda and addressing the challenges posed by the current global energy landscape.
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