Maize prices rise due to increased demand for ethanol production

11-Sep-2024 12:52 PM

Mumbai. The Union Minister for Road Transport and Highways has said that due to the increased demand for maize for ethanol production, its prices have risen sharply, giving farmers a good opportunity to increase their income.

Although the government is not against vehicles running on petrol and diesel, India is in dire need of low-cost, pollution-free and indigenously produced fuel and at the same time there is a need to reduce dependence on petroleum imports from abroad,

so the target of blending ethanol in petrol is being kept high. This target cannot be achieved through ethanol produced from sugarcane alone and hence it is necessary to increase the production of grain-based ethanol.

According to the Highway Minister, last year the price of maize was only Rs 1200 per quintal, which was much below the Minimum Support Price (MSP), but now due to the rapid increase in consumption in ethanol production, its price has jumped to around Rs 2800 per quintal in Bihar and Uttar Pradesh.

The government has increased the minimum support price of maize by 6.50 percent to Rs 2225 per quintal for the marketing season 2024-25, while its wholesale market price is likely to remain above this in the coming months as well.

Farmers are now getting more than twice the price as compared to last year. In the current Kharif season, there has been a good increase in the sowing area of ​​this important coarse grain and hence the production is expected to be better.

Increasing ethanol production will help in reducing petroleum imports. Harvesting and preparation of the new maize crop may gain momentum from next month.