New Delhi, November 14 — Canada has questioned India's use of government-held rice stocks for ethanol production at the World Trade Organization (WTO), seeking details of how much grain has been supplied to distilleries and the prices charged, The Economic Times reported. Rice News Today, reporting the same Economic Times report, said Canada has also asked whether the diversion complies with the food-security objectives of India's public stockholding programme.

Source: The Economic Times via Lapaas Voice

Canada's questions cover three areas, according to the reports: the quantity of rice taken from public stocks and supplied to ethanol distilleries since 2020-21, including in the 2026-27 supply year; the prices at which the Food Corporation of India (FCI) sold the grain to ethanol manufacturers; and whether India's procurement targets under its public stockholding programme account for anticipated demand from ethanol producers.

Source: Rice News Today

2020-21Period from which Canada wants rice-to-ethanol quantities disclosed
3Main areas covered by Canada's questions, according to the reports
SeptemberWhen the United States raised similar concerns, the reports said

The questions do not amount to a formal WTO ruling or dispute finding against India. They are requests for clarification from another member country and are expected to be discussed at a meeting of the WTO's Committee on Agriculture later in November, the reports said. Canada's intervention follows similar concerns raised by the United States in September, signalling growing international scrutiny of India's rice stock management, Inshorts reported.

Source: Inshorts

At the centre of the exchange are the WTO Agreement on Agriculture rules on public stockholding for food security and the 2013 Bali Decision, known as the peace clause, which gives developing countries certain protections for such programmes. Canada questioned whether using publicly held rice for industrial purposes is consistent with the food-security objectives attached to India's stockholding programme, according to the reports.

Source: The Economic Times via Lapaas Voice

India's stated position, in a July 31, 2026 statement by the Ministry of Petroleum and Natural Gas quoted in the reports, is that rice is made available for ethanol only after requirements under the public distribution system, the National Food Security Act, welfare schemes and mandatory buffer stocks have been fulfilled. India is expected to respond to the questions at the Committee on Agriculture discussion later this month.

Source: Rice News Today