Maize prices tumble on weak ethanol demand

17-Nov-2025 09:40 PM

New Delhi. Contrary to the government's claim of transforming maize producers from food to energy providers, the Indian ethanol manufacturing industry's indifference has led to a decline in domestic market prices,

leaving farmers in some areas struggling to cover their input costs. Maize prices have fallen below the Minimum Support Price (MSP) in almost all major markets.

It is noteworthy that the Central Government has increased the MSP for maize by ₹175 from ₹2225 per quintal for the 2024-25 season to ₹2400 per quintal for the 2025-26 season, while its average wholesale market price is hovering around ₹1820 per quintal.

This has led to a sharp decline in the market price of maize compared to the MSP, significantly discouraging farmers.

According to a farmer leader, ethanol manufacturers have significantly reduced their interest in purchasing domestic maize due to the import of cheap maize from the United States, forcing farmers to sell their produce at significantly lower prices.

The government should clarify the situation as soon as possible, otherwise maize producers will continue to suffer huge financial losses.

This year, the area under maize cultivation increased significantly by approximately 10.60 lakh hectares during the Kharif season, and despite some damage to the crop due to surplus rainfall and floods, domestic production is expected to increase significantly.

According to the farmer leader, maize prices have fallen to low levels of 900-1000 rupees per quintal in some places, which could prove to be a reason for farmers to avoid cultivating it.

Maize prices are reported to have fallen to 1121 rupees per quintal in Nasrullahganj, Madhya Pradesh, and 1100 rupees per quintal in Nahargarh, Rajasthan.

Similarly, in some markets of Bihar, the third largest producer state after Karnataka and Madhya Pradesh, the price is reported to be Rs 900-1000 per quintal.