# Government caps use of FCI surplus rice and damaged grains for ethanol production

> India's central government set 2026-27 conditions for ethanol production, capping ethanol from surplus FCI rice at 324 crore litres over nine months and damaged grains at 160 crore litres annually. Most cane-based feedstock use is also banned, so the cap leaves ethanol makers more reliant on maize.

- Date: 2026-11-13 · published 2026-11-14T15:14:53.938Z
- Category: policy · region India · magnitude medium
- Page: https://feedsoft.ai/events/99617-government-caps-use-of-fci-surplus-rice-and-damaged-grains-for-ethanol
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Rough Rice](https://feedsoft.ai/c/RICE.md)

## Why it matters

Limiting rice and damaged-grain feedstock pushes ethanol producers toward maize, tightening corn supply for poultry, dairy and starch users and supporting corn prices. Lower rice ethanol use reduces demand for surplus rice.

## Read by commodity

- CORN: bullish ▲
- RICE: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2024-12-23 | [Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf](https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf.md) | +0.5% | +6.9% |
| 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 | 2017-06-19 | [US corn ethanol producers to tap into overseas demand - Governors' Biofuels Coalition](https://feedsoft.ai/events/70503-us-corn-ethanol-producers-to-tap-into-overseas-demand-governors-biofuels.md) | -5.4% | -1.7% |
| 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 | 2026-11-09 | [Rising maize diversion for ethanol production may fuel food inflation](https://feedsoft.ai/events/90112-rising-maize-diversion-for-ethanol-production-may-fuel-food-inflation.md) | +0.8% | — |
| RICE | 2024-12-23 | [Govt may reduce reserve sale price for rice for ethanol production - GreenLeaf](https://feedsoft.ai/events/27019-govt-may-reduce-reserve-sale-price-for-rice-for-ethanol-production-greenleaf.md) | -3.3% | +5.3% |
| RICE | 2026-11-09 | [China Strengthens Grain Production and Storage to Ensure Food Security by 2030](https://feedsoft.ai/events/89627-china-strengthens-grain-production-and-storage-to-ensure-food-security-by-2030.md) | +3.0% | — |
| RICE | 2022-08-30 | [Government has no plans as of now to curb rice exports: Official source](https://feedsoft.ai/events/39989-government-has-no-plans-as-of-now-to-curb-rice-exports-official-source.md) | -2.5% | +0.2% |

## Sources

- kisanindia.in: https://www.kisanindia.in/agriculture-money/government-put-a-cap-on-the-use-of-fci-surplus-rice-and-damaged-grains-for-ethanol-production-166703.html

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