Maize Growers' Disappointment
22-Nov-2025 10:46 AM
In response to strong demand from the ethanol manufacturing industry, Indian farmers increased maize sowing area to new record levels this year during the Kharif season, raising hopes for a bumper crop.
Farmers were confident that maize cultivation would generate attractive returns, as this important coarse grain would be used in large quantities for animal feed, poultry feed, starch, and ethanol production, and its open market price would remain above the Minimum Support Price (MSP).
If prices fell, the government, through its agencies, would ensure large-scale procurement of maize at the MSP.
The central government increased the minimum support price for maize to ₹2,400 per quintal for the 2025-26 season, an increase of ₹175 from the ₹2,225 per quintal fixed for 2024-25.
However, when Kharif maize entered the domestic market, farmers were dealt a severe blow as no one was willing to buy it even at the MSP, let alone at a higher price.
Weakening demand and increasing supply have led to a sharp decline in maize prices, with the wholesale market price falling to half the minimum support price.
This is causing significant financial losses, particularly for small and marginal farmers who need money to meet their family needs and are unable to hold or maintain long-term stocks.
Surprisingly, the central government and the governments of major producing states are well aware of this serious problem and difficulty faced by maize producers, yet no concrete measures are being taken to address it.
Only the Telangana government has taken the initiative, setting a target of 8 lakh tons and beginning maize procurement at MSP.
Now, the Karnataka government is also showing its active support. It wants to pressure ethanol producers and the poultry feed industry to ensure adequate maize procurement from farmers at MSP.
Other states, including Madhya Pradesh and Maharashtra, need to make appropriate efforts in this direction to alleviate the frustration of maize producers.