# India Faces Decline in Rice Production and Rising Prices Amid Ethanol Demand

> India’s rice production is projected to fall to 14.7 crore tonnes in 2026–27 from 15.4 crore tonnes in 2025–26, with reduced rainfall and rice diverted to ethanol cited as contributing factors. Rice prices have risen, and the government has limited ethanol production using FCI rice stocks and restricted broken-rice exports to contain prices.

- Date: 2026-11-10 · published 2026-11-11T09:24:07.639Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/93357-india-faces-decline-in-rice-production-and-rising-prices-amid-ethanol-demand
- Commodities: [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

Lower production and competition from ethanol demand tighten domestic rice availability, supporting prices; export restrictions may keep more broken rice at home while limiting export supply. The production decline and domestic price pressure make the story meaningful for rice markets.

## Read by commodity

- RICE: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| RICE | 2024-06-24 | [As the demand increased, the price of rice in India increased](https://feedsoft.ai/events/29841-as-the-demand-increased-the-price-of-rice-in-india-increased.md) | -6.8% | -19.8% |
| RICE | 2024-03-26 | [India's rice exports at risk as exporters face huge tax demand-sources](https://feedsoft.ai/events/31138-india-s-rice-exports-at-risk-as-exporters-face-huge-tax-demand-sources.md) | -5.7% | +12.6% |
| RICE | 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) | +1.3% | +0.9% |
| RICE | 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) | -2.9% | -8.6% |
| RICE | 2023-12-27 | [Global rice prices up 7% in a month on high demand, low supplies - The HinduBusinessLine](https://feedsoft.ai/events/32789-global-rice-prices-up-7-in-a-month-on-high-demand-low-supplies-the.md) | -2.4% | +3.7% |

## Sources

- insights.tridge.com: https://insights.tridge.com/speaker-product-news-reports/KJLyFXpzJzgKuB1Gqsm5QUKHGgR43AVdqLVVtk8KwuHbfhssPJ7pzByj

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