# Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf

> India's government is discussing a cut to the reserve sale price of broken rice offered to grain-based distilleries for ethanol production. Broken rice allocated at Rs 28/kg under the open market sale scheme has found no buyers because the price is seen as financially unviable. FCI and agencies hold 28 million tonnes of rice stocks, well above the January buffer of 7.61 million tonnes.

- Date: 2024-12-23 · published 2024-12-23T12:00:00.000Z
- Category: policy · region India · magnitude low
- Page: https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Large state rice stocks and a possible lower reserve price could widen the use of rice in ethanol and reduce pressure on maize as an ethanol feedstock. Lower prices in the domestic rice complex are the likely result.

## Read by commodity

- CORN: bullish ▲
- RICE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| RICE | 2024-06-01 | [Govt Mulls Lifting Rice Export Restrictions Amid Surplus Stocks](https://feedsoft.ai/events/30201-govt-mulls-lifting-rice-export-restrictions-amid-surplus-stocks.md) | +2.8% | -4.0% |
| RICE | 2019-01-18 | [Mexico: Government established guaranteed prices for five agricultural products - Global Trade Alert](https://feedsoft.ai/events/61061-mexico-government-established-guaranteed-prices-for-five-agricultural-products.md) | +1.6% | -4.8% |
| RICE | 2019-12-09 | [Govt may ask FCI to sell 1.5 MT broken rice for grain-based biodiesel units \| Economy & Policy News - Business Standard](https://feedsoft.ai/events/55669-govt-may-ask-fci-to-sell-1-5-mt-broken-rice-for-grain-based-biodiesel-units.md) | +1.7% | +4.3% |
| RICE | 2024-07-10 | [Government to resume wheat sale from FCI stock; may take a call on lifting ban in rice exports - Times of India](https://feedsoft.ai/events/29224-government-to-resume-wheat-sale-from-fci-stock-may-take-a-call-on-lifting-ban.md) | -15.8% | -11.1% |
| RICE | 2025-06-26 | [From shortage to surplus: India pours record rice crop into ethanol \| Reuters](https://feedsoft.ai/events/24150-from-shortage-to-surplus-india-pours-record-rice-crop-into-ethanol-reuters.md) | -4.9% | -5.4% |
| CORN | 2019-03-28 | [New record for U.S. ethanol production and exports in 2018 and an update on Iowa’s ethanol industry](https://feedsoft.ai/events/60116-new-record-for-u-s-ethanol-production-and-exports-in-2018-and-an-update-on-iowa.md) | -2.6% | -4.6% |
| CORN | 2025-07-28 | [Rate Difference in Grain-Based and Sugarcane-Based Ethanol Production Affecting Sector: Official – Outlook Business](https://feedsoft.ai/events/23740-rate-difference-in-grain-based-and-sugarcane-based-ethanol-production-affecting.md) | +0.5% | +0.7% |
| CORN | 2022-01-21 | [Grain-based ethanol manufacturers demand dual pricing for maize, rice feedstock - The HinduBusinessLine](https://feedsoft.ai/events/43134-grain-based-ethanol-manufacturers-demand-dual-pricing-for-maize-rice-feedstock.md) | +1.4% | +6.9% |

## Sources

- gleaf.in: https://www.gleaf.in/news/govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.