How India’s Upcoming Rice Price Rise Could Affect Ethanol Production

Rice price Rice Effect on Ethanol Industries

From October 1, 2025, the Indian government will raise the price of rice, including broken rice that is often used to make ethanol (a type of fuel). This change will affect everyone involved in making ethanol from rice.

Why Is the Government Raising Rice Prices?

India has a lot of rice stored in government warehouses. The government wants to:

• Make sure farmers get a better price for their crops,

• Keep food prices steady for everyone,

• And manage the country’s rice stocks better.

To do this, the government will sell rice (including broken rice) at a higher price.

What Is Changing?

• The price of broken rice for making ethanol will go up from ₹2,250 to ₹2,320 per quintal.

• Other types of rice sold to private companies and cooperatives will also become more expensive.

How Will This Rice Price Rise Affect Ethanol Production?

1. Making Ethanol Will Cost MoreIf you use broken rice to make ethanol, you will now have to pay more for your main ingredient. This means your overall costs will increase.

2. Profits May Go DownIf the selling price of ethanol stays the same, but your costs go up, you will earn less profit on each litre of ethanol you produce.

3. Other Grains May Also Get CostlierIf more people start using other grains like maize (corn) because rice is expensive, the prices of these grains might also rise.

Why Is This Happening Now?

The government wants to:

• Make sure there is enough rice available for food,

• Help farmers earn more,

• And keep food prices under control.

What Can You Do?

• Check Your Expenses: See how the new rice prices will change your production costs.

• Plan Ahead: Think about other options for raw materials or talk to your buyers about possible changes in ethanol prices.

• Stay Informed: Watch for news and updates from the government about rice and ethanol prices.

In Short

From October 1, the price of rice (including broken rice) for making ethanol will go up. This means making ethanol will become more expensive. It’s important to understand these changes and plan your business accordingly.

For more simple updates and tips on ethanol production and government policies, keep following this blog!