Rice straw is one of the abundant lignocellulosic feed stocks in the world and has been selected for producing ethanol at an economically feasible manner. It contains a mixture of sugars (hexoses and pentoses). Biphasic acid hydrolysis was carried out with sulphuric acid using rice straw. After acid hydrolysis, the sugars, furans and phenolics were estimated. The initial concentration of sugar was found to be 16.8 g L(-1). However to increase the ethanol yield, the initial sugar concentration of the hydrolysate was concentrated to 31 g L(-1) by vacuum distillation. The concentration of sugars, phenols and furans was checked and later detoxified by over liming to use for ethanol fermentation. Ethanol concentration was found to be 12 g L(-1), with a yield, volumetric ethanol productivity and fermentation efficiency of 0.33 g L(-1) h(-1), 0.4 g g(-1) and 95%, respectively by co-culture of OVB 11 (Saccharomyces cerevisiae) and Pichia stipitis NCIM 3498. (C) 2011 Elsevier Ltd. All rights reserved.