Clarification regarding media reports on alleged diversion of FCI rice supplied for ethanol production in Madhya Pradesh:                                                                                                                                               1. Certain media reports have alleged large-scale diversion of Food Corporation of India (FCI) rice supplied for ethanol production in Madhya Pradesh, suggesting that around 5 lakh metric tonnes (LMT) of rice worth approximately ₹1,160 crore was diverted and misappropriated. The above reports are not only factually incorrect but also completely baseless. 2. During ESY (Ethanol Supply Year 1st Nov to 31st Oct) 2024-25, 2.98 LMT FCI Rice @ Rs. 22.50/kg was issued to distilleries for ethanol production for the State of Madhya Pradesh. During ESY 2025-26 upto 30.06.2026, 2.41 LMT FCI rice @ Rs. 23.20/kg has been issued. Thus, a total of about 5.39 LMT rice has been issued to distilleries since ESY 2024-25.   3. The cost of ₹1,160 crore mentioned in the report has been calculated on the basis of Issue price of 5 LMT rice at the rate of Rs. 23.20/kg (5,00,000,000 kg * Rs. 23.20/kg = Rs. 1160 crore) on an assumption that the entire quantity of 5 LMT is misappropriated. This figure is the actual amount paid by distilleries to FCI for lifting of 5 LMT rice.  4. The investigation presently underway is not related to the entire quantity of rice supplied under the ethanol blending programme. It pertains to an alleged diversion of 490 bags (242.50 quintals) of rice involving an estimated value of about ₹5.63 lakh. Therefore, the media reports equating the entire value of rice supplied under the ethanol blending programme with the alleged diversion are misleading. The figure of ₹1,160 crore merely represents the value of rice legitimately issued by FCI against payment received from the concerned distilleries in Madhya Pradesh and cannot be construed as the value of the alleged diversion. Action taken  It is also pertinent to note that the matter was detected by the Government agencies themselves and prompt action was initiated well before publication of the media reports.  a) Following detection of irregularities in the movement of rice consignments during the first week of June 2026, FCI immediately issued notices to the concerned distillery, and the State Food Department registered an FIR on 5 June 2026.  b) The Department of Food & Public Distribution deputed a Joint Inspection Team comprising officers of DFPD and FCI, which carried out on-site inspection on 11 June 2026 and established a prima facie linkage between the recovered rice bags and consignments issued under the Ethanol Blending Programme (EBP). c) Pending completion of the investigation, FCI has withheld the security amount deposited by the concerned distillery and discontinued further allocation of rice to the firm. DFPD directed NABARD to withhold release of interest subvention.  d) The Government of Madhya Pradesh has constituted a Special Investigation Team (SIT), while the Madhya Pradesh State Civil Supplies Corporation has imposed a penalty of ₹44.12 lakh and blacklisted the concerned rice mill.  The facts clearly establish that the alleged irregularity was identified by the Government’s own monitoring mechanism and that timely administrative and legal action has already been initiated. The matter continues to be under investigation, and appropriate action will be taken against all persons found responsible in accordance with law. FCI HQ / 13.07.2026 16-20, Barakhamba Lane, New-Delhi-110001, India Phone No: 011- 43527463/62 Email: webmaster.fci[at]gov[dot]in