The Food Corporation of India (FCI) earned ₹2,610 crore in revenue up to July 10 by selling surplus rice for the production of ethanol during the ethanol supply year 2022-23 (December-November).
In a reply in the Lok Sabha on Wednesday, Union Minister of State for Consumer Affairs, Food and Public Distribution, Sadhvi Niranjan Jyoti, said FCI sold 13.05 lakh tonnes (lt) of surplus rice for production of ethanol.
Bihar Distilleries and Bottlers Pvt Ltd emerged the largest buyer of rice with 1.53 lt, for production of ethanol till July 10 of the ethanol supply year 2022-23. Chandigarh Distillers and Bottlers Ltd with 1.67 lt was the largest buyer in the ethanol supply year 2021-22.
Wheat, rice procurement
The supply of surplus stock of rice from the central pool by FCI for conversion into ethanol started in 2020-21.
The Minister said procurement depends not only upon production, but also upon multiple factors such as marketable surplus, MSP, prevailing market rate, demand and supply situation, and participation of private traders
She said 1.24 crore farmers had benefited from paddy procurement at MSP for the central pool till July 18 of the kharif marketing season 2022-23. A majority of these farmers were from Chhattisgarh (20.45 lakh), followed by Telangana (20.15 lakh), Odisha (17.10 lakh) and West Bengal (11.56 lakh).
The Minister said procurement of wheat during RMS 2023-24 started on March 15 and continued up to June 30. She said 262.02 lt was procured at MSP during RMS 2023-24, which is 39.43 per cent more than the 187.92 lt procured during RMS 2022-23.
As on July 1, the stock position of wheat in the central pool was at 301.45 lt, against the buffer norms of 275.80 lt. It is evident that the stock level of wheat is much above the buffer norms requirement, she said.
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On the sale of rice under OMSS (open market sale scheme), the Minister said considering the expected rainfall deficiency caused by El Nino as speculated by the India Meteorological Department, due to which kharif crop production in the country may be adversely affected, and in order to control inflationary trends and to maintain adequate stock levels under the Central pool for distribution under the National Food Security Act (NFSA) and other welfare schemes, the sale of wheat and rice under OMSS (Domestic) has been discontinued with effect from June 13.
She said the governments of Karnataka, West Bengal, and Tamil Nadu had requested for wheat and rice under the OMSS(D) policy. This was not acceded to due to the discontinuation of sale of wheat and rice to states under OMSS(D) 2023.
Beneficiaries under NFSA are being provided foodgrains free of cost till December, the Minister added.