Expectations of Rising Demand and Consumption for Maize

Bangalore. Domestic production of Kharif-season maize is expected to decline compared to last year, driven by a reduction in the area sown and unfavorable weather and monsoon conditions in several key producing states. The arrival of the new maize crop has already begun.

Conversely, domestic demand and consumption of maize are projected to increase. Demand remains robust in the animal feed, poultry feed, and starch manufacturing sectors, while its use in ethanol production is also expected to rise.

The government has prohibited the use of sugarcane juice, sugar syrup, and 'B-heavy' molasses for ethanol production; this will compel distillers to increase their reliance on maize, government-held rice stocks, other damaged grains, and 'C-heavy' molasses.

Although the government has reduced the procurement price for ethanol derived from maize—by Rs 3 per litre for Oil Marketing Companies (OMCs)—leaving distillers dissatisfied and concerned, they remain effectively compelled to continue large-scale ethanol production. Meanwhile, consumption in other sectors is expected to remain steady.