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The Indian government has substantially reduced the price of rice allocated from its reserves for ethanol production. Within ten days of initially setting the rate, officials lowered the cost by twenty percent to 2,250 rupees per quintal.

This revised pricing, announced as part of an update to the Open Market Sale Scheme, also extends to state governments and public sector companies purchasing grain directly. The move is expected to provide significant financial relief to the grain-based ethanol industry.

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The decision follows earlier demands from several state governments for additional rice allocations from central reserves to support state-run welfare schemes. While some states had previously sought grain at a higher price, the central government had maintained its position until now.

The price revision is viewed as a response to market feedback, as industry participants were reportedly unwilling to procure rice at the previously established, higher rate. Government statements indicated the policy adjustment supports the dual objectives of maintaining food security and promoting sustainable energy production.