Ethanol: There has been an intense discussion regarding ethanol for the past several days. Meanwhile, there was a discussion regarding E-20 petrol in the Parliament also. So in the recent ongoing monsoon session also, discussions were held regarding ethanol. It has also been revealed in this monsoon session that FCI i.e. Food Corporation of India has sold ethanol to many companies at cheap prices.

Ethanol made from rice!
In fact, recently in the monsoon session of Parliament, the government has told that the Food Corporation of India (FCI) sold rice to ethanol manufacturing distilleries at a price about 40 percent less than its average purchase cost between June 2025 and June 2026. This rice was given under the Open Market Sale Scheme (OMSS). Minister of State for Consumer Affairs, Food and Public Distribution, Nimuben Jayantibhai Bambhania, gave this information in a written reply in the Rajya Sabha on Tuesday.

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At what price was rice sold?
According to the government, between June and October 2025, FCI sold rice to the distillery at a price of Rs 2,250 per quintal. Its price was increased to Rs 2,320 per quintal from November 2025. Whereas FCI’s average cost of purchasing and handling rice was much higher than this. This cost was Rs 3,719.72 per quintal in the financial year 2024-25 and Rs 3,889.46 per quintal in the financial year 2025-26. That means the rice supplied to the distillery was about 40 percent cheaper than the average cost of FCI.

However, the government has also clarified that no separate subsidy on rice was given to the distillery. Rice was sold at the price fixed under domestic OMSS.

Which state got how much rice?
Between June 2025 and June 2026, FCI sent about 63.5 lakh tonnes of rice to ethanol plants. The total price of this rice was around Rs 14,596.78 crore. Haryana got the most rice among the states. About 8.44 lakh tonnes of rice was given to him. After this, Uttar Pradesh got 8.39 lakh tonnes, Punjab and Himachal Pradesh together got 6.59 lakh tonnes, West Bengal got 5.85 lakh tonnes and Madhya Pradesh got about 4.32 lakh tonnes of rice.

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During this time, the government also said that two cases of misappropriation of FCI rice given for ethanol production came to light. After this, the food departments of the respective states started action. FCI stopped further supply of rice to the distilleries involved in both the cases.

Ethanol Business Ideas: The demand for green energy and alternative fuels is increasing rapidly in India. Meanwhile, ethanol is emerging as a sector through which tremendous earning potential is being seen in the coming times. Under the government’s ethanol blending policy, by mixing ethanol in petrol, not only the increasing pollution is being reduced, but new opportunities for investment and business in this industry are also continuously increasing.

According to experts, as the country is moving towards 20% ethanol i.e. E20 mixture, its demand is going to increase rapidly. This is the reason why it is not limited only to big industries, but small and medium investors also join it and earn good profits. Let us know in detail about three powerful business ideas related to ethanol….

1. Ethanol Production Plant

• Setting up an ethanol manufacturing plant is considered to be the biggest and most profitable business in today’s times. If you have good investment, then it can prove to be a strong business.
• Ethanol is now being prepared not only from sugarcane but also from maize, broken rice and agricultural residues like straw, bamboo, which is called 2G ethanol.
• The government aims to mix 20% ethanol (E20) in petrol, due to which the demand for this product will remain constant in the future.

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2. Biomass Supply Chain Business

• Ethanol production requires agricultural residues (raw materials) on a large scale. In such a situation, you can start supply chain work between farmers and ethanol plants.
• In this business, you can collect stubble, sugarcane bagasse, maize or spoiled grains from farmers and process them and can also supply them to ethanol companies.
• This business can be started with low investment and it also plays a role in protecting the environment from harm. Its biggest advantage is that there is a possibility of continuous growth.

3. Flex-Fuel Conversion Kits Business

• In the coming time, cars and bikes will start running completely on 100% ethanol (E100) or flex-fuel. In such a situation, old petrol vehicles will also need to be upgraded.
• In such a situation, you can purchase flex-fuel conversion kit from your dealership or your own workshop.
• Just as the trend of CNG kits had increased, in the coming time people will increasingly use ethanol kits, because ethanol is much cheaper than petrol.

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