High Ethanol Demand- A Profitable Alternative for Punjab Maize Farmers

06-Jun-2025 12:42 PM

Chandigarh. To effectively implement the crop diversification scheme and ensure water conservation, it has been decided to provide financial incentives to farmers who reduce paddy acreage and increase the area of other crops including maize in Punjab. The Punjab government is placing special emphasis on increasing maize production in the state, which is expected to not only conserve water but also boost farmers' income. The demand for maize in ethanol production is rising rapidly, which is likely to keep its market price strong.

The Punjab government has launched a pilot project aimed at reducing paddy cultivation and promoting maize cultivation in six districts—Bathinda, Sangrur, Pathankot, Gurdaspur, Jalandhar and Kapurthala—by decreasing paddy area by 10,000 hectares. Under this scheme, farmers will receive a financial incentive of Rs 17,500 per hectare (approximately 200 dollars) per year for growing maize. Additionally, the government will ensure the procurement of maize produced in these areas.

The central government has fixed the minimum support price (MSP) of maize at Rs 2400 (about 28 dollars) per quintal for the 2025-26 season, and farmers will be guaranteed at least this MSP. However, this incentive will be provided only for those fields where paddy was cultivated last year and maize is being sown this year.

Paddy sowing has already started in some districts, while in others it is scheduled to begin from June 9. Maize sowing is likely to commence by the end of June.