1 Jul 2025
The Central Government is set to revise the reserve prices of broken rice and other rice categories under the Open Market Sale Scheme (OMSS) beginning October 1, 2025, as part of its broader strategy to address food inflation and support the ethanol blending programme.
According to official sources, the government also plans to revise the reserve price for rice sold to ethanol distilleries under OMSS-Domestic (OMSS-D). This move is aimed at bolstering ethanol production, while maintaining price stability in the food grain market.
Under the current OMSS(D) policy for 2024–25, rice is sold to ethanol producers at a reserve price of ₹2,250 per quintal, applicable across India and capped at a maximum quantity of 52 lakh tonnes (lt). This price will remain in effect until October 31, 2025.
Following a recent meeting, the Committee of Secretaries (CoS) recommended an upward revision to ₹2,320 per quintal for ethanol production, effective November 1, 2025, while retaining the same quantity cap of 52 lt. The tendering process for the Ethanol Supply Year (ESY) 2025–26 is expected to begin in August or September this year.
In line with sustainability goals, the committee has also advised prioritizing the use of old or damaged rice for ethanol manufacturing wherever feasible.
Additional price adjustments have been proposed under OMSS:
Rice sold to state governments and community kitchens will now be priced at ₹2,320 per quintal, up from ₹2,250, with a cap of 32 lt under this category.
The Bharat brand rice, distributed through Nafed, NCCF, and Kendriya Bhandar, will see its price increased to ₹2,480 per quintal. Notably, the ₹200 per quintal subsidy from the Price Stabilisation Fund was discontinued effective July 1.
Private buyers and small traders will now be required to pay ₹2,890 per quintal, up from the previous rate of ₹2,800.
These changes reflect the Centre’s ongoing efforts to balance market intervention, ensure fair access to food grains, and promote ethanol as an alternative fuel source, while keeping inflation in check.