The Centre plans to seek Cabinet approval to reduce the share of broken rice in grains distributed under the public distribution system (PDS) from 25% to 10%, Food Secretary Sanjeev Chopra said. The move is expected to free about 90 lakh tonnes of broken rice annually for ethanol production. The proposal comes amid a sharp rise in global crude oil prices, which have surged nearly 40% in the past three weeks. Chopra said ethanol blending in petrol has reached 20%, up from 1.5% in 2013. This has helped India save over ₹1.63 lakh crore in foreign exchange and cut crude oil imports by 277 lakh metric tonnes since 2014. He added that the government is now focusing on increasing ethanol usage. Options under consideration include raising the blending ratio beyond 20%, introducing ethanol blending in diesel, and promoting flex-fuel vehicles. Speaking at the All India Distillers Association conference, Chopra said the plan would help address supply disruptions faced by the industry. In 2023, weak sugar output and concerns over rice availability led to restrictions on feedstock supply to distilleries. Currently, broken rice makes up 25% of grains distributed free to about 80 crore beneficiaries. Under the proposal, this will be reduced to 10%, and surplus broken rice from the annual 360–370 lakh tonnes will be auctioned to ethanol producers and others. A pilot has been completed in five states. From next year, whole-grain rice supply from FCI to distilleries will stop, with broken rice becoming the main feedstock. India’s ethanol capacity has risen to nearly 2,000 crore litres from 420 crore litres in 2013–14.