Maize, also known as corn, plays a vital role in India's agricultural landscape. It is utilized in four primary ways:
Recent trends indicate a surge in maize demand, primarily driven by the ethanol blending program. In the fiscal year 2021-22, around 20 million tonnes were allocated for food and feed. An additional 11 million tonnes were directed towards ethanol production, resulting in total demand of 33 million tonnes, surpassing domestic supply.
The government’s ethanol blending initiative aims to mix ethanol with petrol, thereby reducing fuel imports and greenhouse gas emissions. Maize serves as one of the key feedstocks in this process, where maize starch undergoes fermentation to produce ethanol for fuel.
In the year 2022-23, India produced approximately 31.51 crore litres of ethanol from maize, contributing to 11.35% of the total ethanol supply. This figure is expected to increase as the government strives for a 20% blending target by 2025.
The redirection of maize for ethanol production affects its availability for animal feed, especially in poultry and dairy sectors. Poultry feed typically comprises 60-72% maize, and reduced supply results in higher prices for poultry products, eggs, and milk.
India currently prohibits the cultivation of genetically modified (GM) maize. Ethanol producers advocate for GM maize, citing its higher yields and suitability for industrial applications. In 2024-25, India imported 5.1 lakh tonnes of maize, primarily GM, under relaxed regulations from Myanmar and Ukraine to meet increasing ethanol demands.
According to data from the Centre for Monitoring Indian Economy (CMIE), the average price of maize has seen a notable increase:
This price rise reflects the growing demand due to its use in fuel production.
The by-product of ethanol production from maize, known as DDGS (distillers dried grains with solubles), is increasingly mixed with soybean de-oiled cake (DOC) in animal feed. This practice reduces the demand for DOC, consequently affecting soybean farmers, as feed producers blend DDGS to manage costs.
DDGS is a protein-rich by-product of the ethanol distillation process, providing a valuable alternative for animal feed. However, imports of DDGS are limited to 15% and are strictly for feed use, not for further ethanol production.
Balancing the use of maize for food, feed, and fuel presents a significant challenge. Policymakers must ensure that ethanol production targets are met without compromising food affordability. Possible solutions include permitting GM maize solely for ethanol production, diversifying feed sources, and maintaining adequate buffer stocks.
"The true test of governance lies in choosing wisely between what is urgent and what is essential."
Q1. What are the main uses of maize in India?
Answer: Maize is primarily used for food, animal feed, fuel (ethanol), and industrial starch production, playing a critical role in both the economy and nutrition.
Q2. How has the ethanol blending program affected maize demand?
Answer: The ethanol blending program has significantly increased maize demand, leading to a total requirement of 33 million tonnes, impacting food and feed availability.
Q3. What is DDGS, and why is it important?
Answer: DDGS is a protein-rich by-product from ethanol production, serving as an alternative feed source that helps alleviate pressure on conventional feed crops.
Q4. Why is there a push for GM maize in India?
Answer: Advocates for GM maize argue it yields better and is more suited for industrial use, particularly in ethanol production, which could enhance supply.
Q5. How do rising maize prices impact consumers?
Answer: Increasing maize prices lead to higher costs for poultry, eggs, and dairy products, affecting overall food affordability for consumers.
Question 1: What is the primary use of maize in India?
A) Fuel production
B) Human consumption
C) Animal feed
D) All of the above
Correct Answer: D
Question 2: What percentage of total ethanol supply was produced from maize in 2022-23?
A) 5.35%
B) 8.75%
C) 11.35%
D) 15.25%
Correct Answer: C
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