Farmers shift focus to maize as biofuel demand boosts sales
18-Aug-2025 10:02 AM
Farmers shift focus to maize as biofuel demand boosts sales
★ For the past few years, farmers have been prioritizing cereals over pulses and oilseeds, and the rising popularity of maize has further reinforced this trend. In the current kharif season, farmers have sown maize on the largest acreage seen in the last five years.
★ According to the latest government data, the total maize area has expanded to 9.8 million hectares, a 17% increase over the same period, while production is also steadily rising.
★ Last month, India achieved its target of blending 20% ethanol with petrol, four months ahead of schedule. This milestone was made possible by policy measures that allowed surplus rice and maize to be diverted toward ethanol production. Ethanol is also produced from molasses.
★ With ethanol demand on the rise, India plans to increase maize output by 10 million tonnes over the next five years. At the same time, demand from the poultry industry is also growing rapidly.
★ Maize prices have been on the rise due to strong demand, though fresh arrivals from the new crop may temporarily ease this trend. However, ethanol-driven demand is expected to keep maize prices firm in the long term.