New Delhi, July 12 -- It is inconceivable that a country grappling with hunger and malnourishment, home to the world's largest population of undernourished children and a nation where 129 million people, according to a 2024 World Bank report, live in extreme poverty (defined as surviving on less than Rs.180 per day) would divert rice, a key staple, to ethanol production. And yet, that is exactly what the Indian government is doing-at highly subsidised prices.

It is selling a whopping 5.2 million tonnes of rice from its food security buffer stock this year to ethanol manufacturers at Rs.22.50 per kg. The first tranche of 2.4 million tonnes has already gone to manufacturers, and it has now decided to release a further 2.8 million tonnes. ...