The ethanol production scheme comes under the Central Government, the State Government has no role. — Food Minister Govind Singh Rajput
Report by Indira Khare
Bhopal. July 12, 2026
The State Food, Civil Supplies and Consumer Protection Minister Govind Singh Rajput has clarified that in the alleged case of misappropriation of rice supplied by the Food Corporation of India (FCI, an undertaking of the Government of India) for ethanol production in Balaghat district, neither the Madhya Pradesh Food Department nor the Madhya Pradesh State Civil Supplies Corporation has any role or relation to this episode.
Food Minister Mr. Rajput stated that the Ethanol Production Scheme is an initiative of the Government of India. Under this, rice is provided to ethanol manufacturing companies by the Food Corporation of India at rates determined by the central government. Afterwards, the ethanol manufacturers supply ethanol to the oil marketing companies of the Government of India. In this entire system, all processes related to rice allocation, pricing, transportation, and operations are managed by the Central Government and its agencies. The State Government or any of its institutions has no direct or indirect role in it.
He stated that following a complaint in the Balaghat district, an investigation conducted by the Collector revealed that 242.55 quintals (490 bags) of rice supplied by the FCI to AVJ Agrico Private Limited, Borgaon (Chhindwara district) for ethanol production were found on the premises of Sancheti Rice Mill, Waraseoni (Balaghat district) in truck number CG 04-JD 3147. Upon prima facie confirmation of rice diversion, an FIR has been registered at the Waraseoni police station against the authorized representative of AVJ Agrico Private Limited and the operator of Sancheti Rice Mill. The state government is providing full cooperation in the police investigation.
Rajput said that in order to prevent any irregularities in the rice supplied for ethanol production and to make the system completely transparent, he has written a letter to Union Food Minister Pralhad Joshi, requesting immediate action.
The Food Minister stated that the state government is working on the principles of transparency and accountability. Strict action will be taken according to the law against any person or organization found guilty.”
