New Delhi/Raipur, Oct 21 (IANS): Chhattisgarh Chief Minister Bhupesh Baghel has written to Prime Minister Narendra Modi expressing his gratitude to the PM for fixing the rate of ethanol production from surplus rice by the state government at Rs 54 per litre.

"The permission to produce ethanol directly from surplus paddy will aid in the economic progress of the farmers of the state", added Baghel.

The Chief Minister mentioned in his letter to the Prime Minister that constant efforts have been made for 18 months to encourage the production of biofuels from surplus paddy towards the fulfilment of the National Biological Policy 2018.

"Concerning the decision undertaken by you, to fix the rate of ethanol production from surplus rice (obtained through FCI godowns) by oil distribution companies at Rs 54 per litre, the efforts and hardships of the state government have been successful. And, I am extremely grateful towards you for taking this decision," Baghel wrote in the letter.

The Chief Minister said the production of biofuel from the surplus paddy purchased from the farmers should be allowed directly in the ethanol plants set up in the state.