The diversion of surplus broken rice to produce ethanol is not impacting food inflation, as ethanol production is allowed only after maintaining adequate buffer stocks and meeting the requirements under the National Food Security Act (NFSA) and other welfare schemes, the Parliament was informed on Wednesday.

In a written reply to a question in the Lok Sabha, Minister of State for Food Nimuben Jayantibhai Bambhaniya said that after maintaining buffer stocks and providing for requirements under the NFSA, the government sells only excess rice from the Central Pool under the Open Market Sale Scheme, which is then allocated as feedstock for ethanol production.