Odisha Government Plans to Utilize Broken Rice for Ethanol Production

The Odisha government is set to implement a plan to supply broken rice for ethanol production, a move aimed at enhancing the state’s agricultural and energy sectors. This initiative comes as more farmers are engaging in paddy cultivation due to an increase in the procurement rate, with officials announcing details on Tuesday.

The main ethanol plant, located in Bargarh District, utilizes both rice grain and rice straw to produce ethanol, contributing to the fuel blending process. This plant is part of a broader strategy involving smaller ethanol facilities across the state that also rely on grain feedstock. These smaller plants are supported by the Food Corporation of India (FCI), which allocates surplus rice to them as part of the ethanol blended petrol (EBP) program.

Inter-Ministerial Committee Meeting Discusses Roadmap

A discussion regarding the proposal was held during the inaugural meeting of the Inter-Ministerial Committee for procurement for the Kharif 2025-26 season on March 4, 2024. Chaired by Deputy Chief Minister KV Singh Deo, who oversees the Agriculture and Farmer Empowerment Department, the meeting focused on creating a roadmap for post-paddy purchase management. The government aims to complete the procurement of Kharif crops by the end of November.

According to officials, the government plans to supply broken rice for ethanol production. The meeting also addressed the distribution of free rice to economically disadvantaged families through various schemes, as well as potential exports to other countries. The procurement price has been set at Rs 3,100 per quintal, encouraging many farmers to shift their focus to paddy cultivation. This policy change has resulted in a notable 29 percent year-on-year increase in the registration of new farmers in the state.

Infrastructure Improvements and Future Plans

To ensure effective utilization of paddy after procurement, the meeting concluded with a resolution to construct additional warehouses. This initiative will be a collaborative effort involving the FCI, the Cooperation Department, and the State Warehousing Corporation. The officials emphasized that managing surplus rice after procurement is crucial for the state’s agricultural strategy.

Permanent model ‘mandis’ (markets) will also be established in coordination with various departments to streamline the process. Plans include opening more rice mills and upgrading existing facilities to hybrid models to enhance processing efficiency.

As the Odisha government moves forward with these plans, the focus remains on maximizing the benefits of paddy cultivation while supporting local farmers and contributing to sustainable energy production.