Government has said that price of Food Corporation of India, FCI rice to remain two thousand rupees per quintal for production of ethanol during current Financial Year 2021-22. 
 
To increase production of fuel grade ethanol and to achieve blending targets, the Govt of India has allowed use of maize and rice with FCI for production of ethanol. Government has declared that rice available with FCI would continue to be made available to distilleries in coming years.
 
Government has fixed price of ethanol from maize as 51 rupees 55 paise  per litre and rice available with FCI as 56 rupees 87 paise per litre for ethanol supply year 2020-21.
 
With the vision to boost agricultural economy, to reduce dependence on imported fossil fuel, to save foreign exchange on account of crude oil import bill and to reduce the air pollution, Government has fixed target of 10 per cent blending of fuel grade ethanol with petrol by 2022 and 20 per cent blending by 2025.
 
With a view to support sugar sector and in the interest of sugarcane farmers, the Government has also allowed production of ethanol from B-Heavy Molasses, sugarcane juice, sugar syrup and sugar; and encouraging sugar mills to divert excess sugarcane to ethanol.