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Priyank Kharge flags economic concerns over subsidised rice supplied to ethanol makers
Updated On: 25 August, 2026 03:23 PM IST | Bengaluru | IANS
“Grain is subsidised with taxpayers’ money; the government bears the cost of procurement, storage and transportation; and then the same grain is sold to ethanol producers at a discounted price. So, who is actually benefiting from this entire system?” he asked

Priyank Kharge has questioned the economic rationale behind supplying subsidised rice to ethanol producers. File pic
Karnataka Home Minister Priyank Kharge on Tuesday questioned the Centre’s policy of selling rice procured with taxpayers’ money to ethanol producers at prices around 40 per cent lower than its acquisition cost.
In a statement, Kharge said, “India’s ethanol arithmetic simply does not add up”, while questioning the economic rationale behind diverting foodgrains meant for food security towards ethanol production.


