# Rice prices surge: Broken rice also becomes more expensive; government caps ethanol production

> India capped ethanol production from surplus Food Corporation of India rice at 3.24 billion liters during the first three quarters of the current year under revised tender terms issued on November 3. The report says broken-rice prices have risen sharply and notes that lower preliminary paddy production estimates could prompt the government to consider a full export ban on broken rice.

- Date: 2026-11-05 · published 2026-11-06T09:06:24.838Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/83638-rice-prices-surge-broken-rice-also-becomes-more-expensive-government-caps
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md), [Corn](https://feedsoft.ai/c/CORN.md)

## Why it matters

Limiting rice use for ethanol could preserve more grain for food, but rising prices and the prospect of tighter export restrictions signal domestic supply concerns. Any export ban would reduce rice available to global buyers and could support international prices.

## Read by commodity

- CORN: neutral
- RICE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| RICE | 2023-01-03 | [Nepal has a chance to become self-reliant on fine rice production](https://feedsoft.ai/events/12187-nepal-has-a-chance-to-become-self-reliant-on-fine-rice-production.md) | -2.3% | -1.2% |
| RICE | 2023-01-20 | [Export ban on wheat & broken rice to continue, says government official - CNBC TV18](https://feedsoft.ai/events/37757-export-ban-on-wheat-and-broken-rice-to-continue-says-government-official-cnbc.md) | +2.2% | -2.0% |
| RICE | 2022-05-26 | [Is Rice Next After Wheat, Sugar? Government May Decide Soon, Experts say](https://feedsoft.ai/events/41362-is-rice-next-after-wheat-sugar-government-may-decide-soon-experts-say.md) | -0.6% | -6.0% |
| RICE | 2025-12-01 | [Rice prices climb 24% as government purchase rules could boost demand](https://feedsoft.ai/events/12733-rice-prices-climb-24-as-government-purchase-rules-could-boost-demand.md) | -0.9% | -5.6% |
| RICE | 2024-04-12 | [Export bans, restrictions: How government is trying to keep food prices in check ahead of elections](https://feedsoft.ai/events/30688-export-bans-restrictions-how-government-is-trying-to-keep-food-prices-in-check.md) | +12.7% | +10.8% |
| CORN | 2025-03-05 | [Year-round E15 needed as latest data shows record ethanol production driven by exports, not domestic use \| Ethanol Producer Magazine](https://feedsoft.ai/events/25569-year-round-e15-needed-as-latest-data-shows-record-ethanol-production-driven-by.md) | +3.5% | +6.0% |
| CORN | 2017-12-21 | [Nebraska, Iowa ethanol producers hail opening of Japan’s market, expect sales to top last year’s - Governors' Biofuels Coalition](https://feedsoft.ai/events/67476-nebraska-iowa-ethanol-producers-hail-opening-of-japan-s-market-expect-sales-to.md) | +0.8% | +2.1% |
| CORN | 2017-10-13 | [AgroPages-Record Soy carryover in Argentina expected to pressure prices-Agricultural news](https://feedsoft.ai/events/68306-agropages-record-soy-carryover-in-argentina-expected-to-pressure-prices.md) | -0.4% | -5.5% |

## Sources

- finedrishti.com: https://finedrishti.com/business/commodities/broken-rice-price-hike-government-caps-ethanol-production-fci-surplus/

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