iGrain India - The consumption of maize in both the poultry feed and ethanol manufacturing industries is expected to increase rapidly, which is significantly affecting its demand and pricing in India.
Just a few years ago, maize farmers struggled with low prices, sometimes selling their produce at prices well below the minimum support price (MSP).
However, the current situation is drastically different, with maize prices now exceeding the MSP by 20-25%. This price surge is largely driven by its growing use in poultry feed, starch manufacturing, and especially ethanol production.
For the 2024-25 season, the government has set the MSP of maize at Rs 2225 per quintal. In contrast, the market price in Begusarai, Bihar was Rs 2800 per quintal last week, highlighting the increasing value of maize.
A further price increase is possible if the government raises the price of ethanol produced from grains. This has led to intense competition between the poultry industry and ethanol manufacturers to secure maize supplies. Meanwhile, producers and stockists are holding back on selling in anticipation of further price increases.
The high market prices have led to a significant decline in maize exports, and low-income individuals are finding it increasingly difficult to afford maize for food.
As demand grows, there is a pressing need to boost domestic production. Agricultural experts are recommending the use of hybrid seeds to enhance maize yields, as hybrid technology can help increase production significantly.
In the previous year, around 60 lakh tonnes of maize were used in ethanol production alone, further highlighting the growing importance of maize in the Indian economy.