Poultry farmers rely on maize for feed, ethanol producers use it to make fuel, and starch manufacturers supply food processing and other industries. The grain is also used in products ranging from snacks to industrial ingredients, while its conversion into ethanol has linked it to India’s efforts to reduce reliance on imported crude oil.
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The National Egg Coordination Committee (NECC) and the Grain Ethanol Manufacturers Association (GEMA) are among the industry bodies making representations to the government to secure supplies.
The oil marketing companies (OMCs) have released their first tender for procuring ethanol for the ethanol blending programme (EBP) for the upcoming ethanol year beginning November. They have decided to exclude sugar-based ethanol from the first tender for EBP of 2026-27 ethanol year and have reduced the incentives for maize-based ethanol by Rs 3/litre.
ET Bureau“In the absence of a substantial contribution from sugarcane-based ethanol, the tender appears to place a disproportionate burden on rice-based feedstocks, particularly surplus foodgrains (SFG) and damaged foodgrains (DFG), while potentially diluting the role of maize as an industrial feedstock,” said Grain-Based Ethanol Manufacturers (GEMA) in a release.
“The industry’s concern is that procurement may initially favour SFG up to the prescribed cap, followed by DFG as the next-lowest-priced option, with limited scope of maize receiving any allocations,” said GEMA president CK Jain. “Cutting the maize incentive while lower-priced rice-based supplies remain available risks weakening the economics of maize-based production and the market it creates for farmers.”Even as grain-based ethanol manufacturers are trying to ensure that the government does not curtail procurement of maize based ethanol, the poultry industry is concerned about the maize prices that have been continuously rising over the last few months.
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“While maize supply is tightening, demand continues to surge due to the government’s grain-based ethanol blending programme, which scaled up dramatically. Alongside needs from the starch and food-processing industries, poultry feed typically consumes around 55-60% of total maize, placing it in direct competition with ethanol plants,” the NECC said in a letter to the government last week.
“Maize should get priority for food as it is used in many foods in the form of starch, and it is a main feed for poultry. If we increase the use of maize for ethanol, then we may starve poultry and may have to import starch from China,” said GK Sood, a senior agricultural expert.