News Capsule: India Maize Outlook: Production Rising on Ethanol Push
06-Apr-2026 03:34 PM
News Capsule: India Maize Outlook: Production Rising on Ethanol Push
★ India’s maize balance sheet over the last three years reflects a structural shift in demand, with ethanol emerging as a key driver of production growth.
★ From 2021-22 to 2024-25, maize production has increased from about 337 lakh tonnes to over 420 lakh tonnes, indicating a steady upward trend despite minor fluctuations in between. This rise is not just supply-led, but largely demand-driven, especially from the fuel sector.
★ The government’s push towards higher ethanol blending has significantly altered the consumption pattern. Traditionally used for feed and food, maize is now increasingly diverted towards grain-based ethanol production, which is rapidly expanding across the country.
★ At the same time, domestic consumption has also risen consistently (from ~300 LMT to 425+ LMT), reflecting strong demand from ethanol, poultry feed, and industrial sectors.
★ Ethanol demand is becoming the marginal driver of the maize market, influencing both production decisions and price dynamics. Farmers are responding to this shift by gradually increasing maize acreage, supported by better price realization compared to some competing crops.
★ Going forward, maize production is expected to remain on an upward trajectory, primarily due to:
★ sustained ethanol demand under blending targets
★ expansion of grain-based distilleries
★ policy support for alternative feedstocks beyond sugar
★ India’s maize sector is transitioning from a Feed-driven market to a fuel-linked market, and the rising production trend over the last three years is a direct reflection of growing ethanol demand.