Ethanol Push: Centre Likely To Reduce PDS Broken Rice Allocation To Increase E20 Production - Sources

New Delhi: Amid the ongoing concerns over the E20 petrol, the cabinet may take a major decision on ethanol today (July 1). Sources told Times Now the Centre is likely to bring a proposal in the Cabinet to reduce the allocation of broken rice in the Public Distribution System (PDS).There is a proposal to reduce the share of broken rice in PDS from 25 per cent to 10 per cent. This decision is expected to make available approximately 90 lakh tonnes (9 million tonnes) of broken rice annually. The additional broken rice will be used for ethanol production.The move will provide major support to the Ethanol Blending Programme. The government is preparing to supply raw material to the ethanol sector while maintaining food security.'Ethanol Blending Is

Experiment'Earlier on Tuesday, the Supreme Court directed a status quo on ethanol supply allocation for the Ethanol Supply Year (ESY) 2025–26. Notably, the Centre told the top court that the 20 per cent ethanol blending initiative in petrol is still under the experiment stage, adding that the full impact of the policy is expected to be clearer by next year.A bench of Justice MM Sundresh and Justice Sheel Nagu heard arguments from Attorney General R Venkataramani, representing Bharat Petroleum Corporation Ltd and Senior Advocate Siddharth Dave before issuing the order, representing respondents.Venkataramani argued that the Karnataka High Court's order would affect the policy for 20 per cent ethanol-petrol blending. The top court also issued notice to 24 respondents – the Union of India and 23 distilleries – on BPCL’s appeal challenging the high court's order.However, the government issued a clarification over these reports. "The reports state that the Government's 20% Ethanol Blended Petrol (E20) Programme is "still an ongoing experiment" and that "the impact of the policy would become clearer by next year." These reports are completely false and do not reflect anything even close to the actual submissions made before the Hon'ble Court," the Ministry of LAw and Justice said.Last week, the Centre had dismissed concerns being raised that India's ethanol blending program -- E20 fuel -- could affect the validity of vehicle insurance policies and assured that it remains safe, consumer-friendly, and economically beneficial. In a statement, the oil ministry had said that claims linking E20 fuel use to insurance invalidation had been clarified with relevant stakeholders and were found to be incorrect.In April this year, the government made E20 petrol mandatory at all fuel pumps. It is blended with 20 per cent ethanol and 80 per cent petrol.