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Shah Enterprises

Indian Govt to Refine 50 Lakh Tonnes of FCI Rice for Market Boost

Indian Govt to Refine 50 Lakh Tonnes of FCI Rice for Market Boost

Indian port workers handling FCI rice sacks during large-scale rice export loading with Indian flags and containers marked “India Rice Export.

Until now, the Central Pool accepted rice with up to 25% broken grains. Under the new plan, a more refined segregation system will be used:

  • Rice will be sorted into 10% and 15% broken grain categories.
  • From every 100 quintals, 85 quintals will contain no more than 10% broken grains.
  • The remaining 15 quintals will be categorized as fully broken rice.

This cleaner 10% broken rice is expected to command better prices in the open market. As a result, rice will become more competitive both domestically and globally.

Also Read – India’s Rice Production Forecast to Hit Record 151 MT in 2025–26

Pilot Program Success Across Four States

The new method was tested last year in Punjab, Haryana, Telangana, and Andhra Pradesh. Each state processed 10,000 tonnes of rice under the pilot. The results were positive. Therefore, the government is now planning a nationwide rollout.

Boosting Ethanol Production

The Centre has allocated 52 LT of rice for ethanol blending. However, this batch must consist of 100% broken rice. The refined segregation process helps ensure a consistent supply of this feedstock. Thus, ethanol distilleries will benefit from more reliable inputs.

Auction and Distribution Plans

According to Food Secretary Sanjeev Chopra, the government will auction 10% broken rice directly to ethanol distilleries. This move reduces storage time and cuts logistics costs.

In addition, the government may allow 10% broken rice in the Public Distribution System (PDS) in the future. However, a specific timeline has not yet been announced.

Wider Market Impact: Wheat and Sugar Update

Chopra also confirmed there is no need to release additional wheat under the OMSS (Open Market Sales Scheme). Supplies and prices remain stable.

  • Record wheat production for 2024–25 stands at 117.5 million tonnes.
  • The government has already procured over 30 million tonnes.
  • Sugar exports have touched 8 LT this fiscal year, within the 10 LT seasonal limit.

Also Read – India to Export 9 Lakh Tonnes of Rice to Bangladesh as Demand Surges

Final Thoughts: Stronger Quality, Stronger Market Value

By reducing broken grain content and streamlining rice segregation, the government aims to enhance product quality and auction outcomes. As a result, grain quality will be more transparent, ethanol production will be more efficient, and Indian rice prices will be more stable in domestic and export markets.

Stay connected with Shah Enterprises for the latest updates on rice procurement reforms, pricing trends, and export insights tailored for industry stakeholders.

At Shah Enterprises, we continue to support transparency and excellence in rice exports. Stay tuned for more updates as new policies are announced.

Also Read – India Set to Become the World’s Largest Rice Producer in 2024–25

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