The growing use of maize in ethanol production has raised concerns for the poultry feed industry and other sectors that rely on maize as a raw material.

As the demand for maize increases due to ethanol manufacturing, it is impacting the availability of maize for other industries, resulting in a shortage and rising prices.

Domestic production, although increasing, is still insufficient to meet the demand from both the ethanol industry and poultry feed manufacturers.

According to the Union Agriculture Ministry, the sowing area for maize in the Kharif season has expanded this year to 88.06 lakh hectares, up from 84.65 lakh hectares last year.

The ministry has also projected an increase in maize production, expecting it to rise by about 23 lakh tonnes, from 222.45 lakh tonnes to 245.41 lakh tonnes.

However, even with this increase in production, it is unlikely to satisfy the demands of the rapidly growing ethanol industry.

The maize shortage is further exacerbated by its high price. The minimum support price (MSP) for maize has been raised to Rs 2225 per quintal, but market prices have risen even higher.

The government has been hesitant to allow duty-free imports of maize from other countries, though maize imports have occurred from Myanmar, albeit with limited stock.

While imports of genetically modified (GM) maize from countries like Argentina, Brazil, or the United States are not favored, the government might need to consider increasing imports from Ukraine, where non-GM varieties of maize are produced, to ease the supply crunch.

As maize remains in high demand for ethanol production, the poultry feed industry, starch manufacturers, and other sectors relying on maize face rising costs and limited supply, underscoring the need for a balanced approach to address both domestic requirements and global trade dynamics.