The Centre has announced its new Open Market Sales Scheme (OMSS) policy, aiming to bolster ethanol production and stabilize foodgrain markets. For the 2025-26 ethanol supply year, 5.2 million tonnes (mt) of rice are allocated for ethanol production, maintaining the previous year’s volume but with an increased price of INR 2,320/quintal from INR 2,250. Distilleries are urged to prioritize old/broken rice.
A new category of broken rice from the Rice Milling Transformation scheme has been introduced for distilleries and private parties, available via e-auction at INR 2,320/quintal from November 1. Wheat’s reserve price under OMSS is now INR 2,550/quintal, up from last year’s INR 2,300-INR 2,325.
For ‘Bharat’ brand retail, central cooperative agencies can procure rice at INR 2,480/quintal from November 1, 2025, to June 30, 2026. However, the INR 200/quintal subsidy from the Price Stabilisation Fund (PSF) for ‘Bharat’ brand rice ceased on July 1. Cooperative organizations are permitted to procure rice in both procuring and consuming states during paddy procurement, but private millers cannot sell ‘Bharat’ brand rice. Institutional buyers can now purchase rice directly from FCI at INR 2,480/quintal from November 1, 2025, up from INR 2,400.
State governments and community kitchens can buy rice at a fixed price of INR 2,320/quintal from November 1, 2025, to June 30, 2026, an increase from INR 2,250, though their allocation is reduced to 3.2 mt from 3.6 mt. E-auction prices for rice with maximum 10% broken type will be INR 3,090/quintal and for 25% broken type, INR 2,890. Rice prices include transportation costs, while wheat prices do not.
