Ethanol distilleries rework output plans as FCI halts rice supply

With the Food Corporation of India (FCI) suddenly stopping the supply of rice for ethanol production, distilleries are trying to limit the disruption by considering alternatives, even as a few units are staring at temporary shutdowns.

BSE-listed Gulshan Polyols informed the stock exchange on Tuesday that production at its 500 kiloliters per day grain-based ethanol manufacturing plant in Chhindwara district of Madhya Pradesh would be disrupted for a few days. “However, the company has started procuring damaged food grains/rice from the open market to fulfil its commitments to a smaller extent till the time the supply of surplus rice from the FCI is restored,” the company said.