# Govt may ask FCI to sell 1.5 MT broken rice for grain-based biodiesel units | Economy & Policy News - Business Standard

> The Indian government may direct FCI to sell about 1.5 million tonnes of broken rice to grain-based biofuel units at roughly Rs 22-23 per kg. The move would use surplus rice stocks, which are about three times the required buffer, and address idle distillery capacity caused by lower sugarcane output.

- Date: 2019-12-09 · published 2019-12-09T12:00:00.000Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/55669-govt-may-ask-fci-to-sell-1-5-mt-broken-rice-for-grain-based-biodiesel-units
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Meat & Bone Meal](https://feedsoft.ai/c/MBM.md)

## Why it matters

Diverting surplus broken rice into biofuel feedstock removes supply from food and feed channels, which is bearish for Indian rice prices and helps clear FCI stocks.

## Read by commodity

- MBM: bearish ▼
- RICE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| RICE | 2019-11-13 | [Govt caught in no man's land as foodgrain mountains keep growing taller \| Economy & Policy News - Business Standard](https://feedsoft.ai/events/56035-govt-caught-in-no-man-s-land-as-foodgrain-mountains-keep-growing-taller-economy.md) | +3.0% | +5.9% |
| RICE | 2023-01-09 | [Govt mulls lifting rice export curbs as supply improves, prices stabilise \| Economy & Policy News - Business Standard](https://feedsoft.ai/events/37758-govt-mulls-lifting-rice-export-curbs-as-supply-improves-prices-stabilise.md) | +2.1% | +0.3% |
| RICE | 2024-10-02 | [Rice battle heats up as India, Pakistan lift export curbs \| Business and Economy News \| Al Jazeera](https://feedsoft.ai/events/12946-rice-battle-heats-up-as-india-pakistan-lift-export-curbs-business-and-economy.md) | -1.1% | -2.4% |
| RICE | 2024-09-28 | [Govt eases export curbs for non-basmati white rice \| Business News - The Indian Express](https://feedsoft.ai/events/12949-govt-eases-export-curbs-for-non-basmati-white-rice-business-news-the-indian.md) | +0.1% | +0.0% |
| RICE | 2024-07-17 | [Non-basmati rice bore the brunt of export restrictions imposed in 2023 \| Agriculture - Business Standard](https://feedsoft.ai/events/29328-non-basmati-rice-bore-the-brunt-of-export-restrictions-imposed-in-2023.md) | +2.3% | +2.7% |

## Sources

- timesofindia.indiatimes.com: https://timesofindia.indiatimes.com/city/hyderabad/trial-run-held-at-animal-waste-plant/articleshow/72447119.cms
- business-standard.com: https://www.business-standard.com/article/economy-policy/govt-may-ask-fci-to-sell-1-5-mt-broken-rice-for-grain-based-biodiesel-units-119122200784_1.html

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