India has allocated a record 5.2 million metric tons of rice for ethanol production—equivalent to 9% of global rice shipments—as the world's largest rice producer grapples with unprecedented inventory levels.
The Food Corporation of India currently holds 59.5 million tons of reserves, vastly exceeding the government's 13.5 million ton target. This surplus stems from abundant monsoon rains promising a bumper harvest, contrasting sharply with earlier droughts that prompted two-year export restrictions lifted in March.
The rice-to-ethanol conversion supports India's ambitious goal of 20% ethanol blending in gasoline by 2025-26, nearly achieved last month at 19.8%. This strategy compensates for reduced sugarcane availability, which previously dominated ethanol feedstock before 2023 drought conditions.
The initiative also relieves pressure on corn prices, which hit record highs last year, while helping India manage its massive grain surplus effectively through alternative industrial applications.
