Odisha to Channel Surplus Paddy Into Ethanol Production as Cultivation Surges

Bhubaneswar: The Odisha government is drawing up a roadmap to utilise surplus and broken rice for ethanol production, following a sharp rise in paddy cultivation triggered by higher procurement rates.

The proposal was discussed at the first meeting of the Inter-Ministerial Committee for Kharif 2025-26 procurement, chaired by Deputy Chief Minister and Agriculture Minister K V Singh Deo. Officials said the state plans to complete procurement by the end of November and supply broken rice to ethanol plants thereafter.

Odisha’s main ethanol facility in Bargarh already produces fuel using both rice grain and rice straw. In addition, smaller units across the state are supplied with surplus rice by the Food Corporation of India (FCI) under the ethanol blended petrol programme.

Officials noted that the hike in the procurement rate to ₹3,100 per quintal has encouraged more farmers to grow paddy, leading to a 29 per cent increase in farmer registrations compared to last year. To manage the surge, the government is focusing on storage expansion and improved infrastructure.

Plans include constructing permanent model mandis, building new warehouses under FCI, the Cooperation Department, and the State Warehousing Corporation, and upgrading existing rice mills into hybrid mills.

“The meeting also reviewed other aspects of surplus management, including free rice distribution under welfare schemes and the potential for exports,” a senior official said.