New Delhi: BRS leader B Parthasaradhi Reddy on Friday urged the government to restore the supply of broken and surplus rice through Food Corporation of India (FCI) for grain-based ethanol makers, which was halted in July 2023.

Speaking during Zero Hour in Rajya Sabha, Reddy said about 131 grain-based ethanol plants have been established across the country with an investment of Rs 25,000 crore in the last four years, inspired by the government’s biofuel policy.

However, the abrupt cessation of FCI rice supply has created a “shock wave” in the industry, he said.

The Bharat Rashtra Samithi (BRS) member noted that while the government has increased broken and damaged rice as well as maize rates from Rs 21 to Rs 29 per kg, the corresponding ethanol price adjustment is not proportional, making the industry unviable.

Reddy urged the government to allow maize imports under a tariff relief quota, similar to provisions for other feed industries.