The Indian government plans to segregate broken rice from 50 lakh tonnes of FCI stock to improve quality and boost market value. Following a successful pilot in four states, the initiative will also support ethanol production. High-quality rice with 10% broken content will be auctioned, while 100% broken rice will be supplied directly to distilleries to reduce costs.
The Government is set to scale up efforts to improve the quality of rice in the Food Corporation of India (FCI) stock. A plan has been finalized to segregate broken grains from up to 50 lakh tonnes of rice, thereby enhancing the overall quality and market value of the grain during auction.
In 2024, FCI directed selected rice mills in Punjab, Haryana, Telangana, and Andhra Pradesh to implement a new system for separating 15% broken rice from a batch of 10,000 tonnes processed under the Custom Milled Rice (CMR) scheme. This initiative aimed to bring down the usual broken grain percentage—typically around 25%—in rice procured for the Central Pool.
With 52 lakh tonnes of rice allocated for ethanol production this year, the government plans to ensure that this entire quantity consists of 100% broken grains. Under the new model, mills will separate 15% broken rice from the bulk, leaving the remaining rice with only up to 10% broken content, which is more desirable in the open market, officials said.
If a rice mill is required to supply 100 quintals of rice under the CMR scheme, it will now deliver 85 quintals of higher-quality rice (containing 10% broken grain) in one lot and 15 quintals of fully broken rice in another. This method not only enhances the quality of rice entering the Central Pool but also creates a distinct supply stream for broken rice that can be used in ethanol production.
At an edible oil conference hosted by the Indian Vegetable Oil Producers’ Association (IVPA), Food Secretary Sanjeev Chopra stated that the rice containing 10% broken grain will be auctioned in the open market. He added that the fully broken rice will be sold directly from rice mills to distilleries, helping the government save costs on transportation, storage, and fortification.
The government has been struggling to offload surplus rice stocks in the open market due to weak demand for the current FCI rice. Despite fulfilling obligations under welfare schemes, such as the National Food Security Act, excess inventory remains a concern.
At present, rice with 10% broken grains is being sold to private players, and in future phases, the government may consider distributing it through the Public Distribution System (PDS). However, the Food Secretary clarified that introducing this rice in select regions under the PDS is not viable at the moment.
This initiative is part of a broader strategy to improve grain quality, reduce wastage, optimize ethanol production, and make FCI rice stocks more attractive in the open market.