This plant is being set up in coordination with the "Atmanirbhar Gujarat, Atmanirbhar Bharat" initiative of Government of India and the Petroleum policy of adding ethanol as additive to reduce burden on import of crude oil.

The estimated project cost is to the tune of Rs 2250 crore, giving employment to 5000 plus people directly or indirectly. It is expected to generate annual revenue of approximate Rs 3500 crore.

Mishtann has initiated the required steps to move forward with the project efficiently with a view to commence the grain-based ethanol plant as desired from second quarter of the year 2024.

Further the company said that the Government of India's recent ban on exports of broken rice and a 20% duty on exports of various grade rice has exacerbated inflationary expectations and nudged up retail prices for rice in recent weeks. This has opened opportunities for rice companies to enter into ethanol manufacturing activities.

"India exports rice to more than 150 countries, and any reduction in its shipments would increase upward pressure on food prices, which are already rising because of drought, heat-waves and Russia's invasion of Ukraine," the company said in a statement.

India accounts for more than 40% of global rice shipments and competes with Thailand, Vietnam, Pakistan and Myanmar in the world market. China was the biggest buyer of broken rice, with purchases of 1.1 million tonnes in 2021, while African countries such as Senegal and Djibouti bought broken for human consumption, it added.

Mishtann Foods is engaged in manufacturing and marketing of a large variety of rice with focus on Basmati rice, and pulses like dal.

Mishtann Foods' net profit surged 216% to Rs 11.03 crore and revenue from operations soared 118.7% to Rs 158.27 crore in Q1 FY23 over Q1 FY22.