Maize Prices Crash Nationwide as Farmers Warn Ethanol Push and Fear of US Imports Are Driving Them Into Crisis
Maize prices have crashed far below MSP, deepening farmer distress even as India pushes maize-based ethanol. Fears of US imports and high industry gains are worsening the crisis. Farmers demand procurement centres and a ₹3,000/quintal price, saying current rates don’t cover costs, while rains, low compensation and falling crop prices add pressure.
India’s promise of turning farmers from “food providers to energy providers” is facing serious criticism as maize growers across several states report a steep fall in prices. Even as the government pushes for large-scale ethanol production from maize, farmers say they are being pushed into crisis because market prices have dropped far below the minimum support price (MSP) and even below production costs.
Kisan Mahapanchayat president Ramapal Jat said maize farmers are suffering because of speculation that India may import cheaper maize from the United States. He explained that this fear has crashed the domestic market, giving ethanol manufacturers an unfair advantage. “The market price of maize has dropped to around Rs 900, which is well below both the MSP and the cost of production,” he told The New Indian Express. According to him, ethanol companies are earning profits while farmers are being forced to sell at throwaway rates. “Industries are taking advantage of the low prices to produce cheaper ethanol from maize and sell it to the government,” he said.
Farmers in Karnataka echoed the same concerns during a protest held by the All India Kisan Khet Mazdoor Sangathan (AIKKMS) outside the deputy commissioner’s office in Dharwad on Friday. They demanded that the government immediately open maize procurement centres and set the price at Rs 3,000 per quintal. AIKKMS district president Deepa Dharwad said farmers have repeatedly asked both the state and Union governments to declare fair and scientific prices every year, but maize continues to fetch unremunerative rates. She pointed out that continuous rains caused heavy damage this season, forcing many farmers to sow their crops multiple times. “A farmer spends between Rs 20,000 and Rs 25,000 per acre but now gets only Rs 1,500 to Rs 1,600 per quintal. At these rates, farmers cannot even recover the cost of fertilisers and basic cultivation,” she said.
Deepa added that yields have dropped because of the rains, while compensation for crop loss has still not been released. Many farmers who borrowed money for cultivation are now unable to repay loans, pushing them deeper into distress. She warned that falling prices of other crops, including tur, green gram, cotton, onion, and soya, are worsening the agricultural crisis. At Amargol APMC, she said, a quintal of onion was recently auctioned for just Rs 50. “This mocks the very livelihood of farmers,” she said, accusing the government of fixing prices that do not even cover transportation costs.
Across the country, maize prices show a similar trend. At the Nasrullaganj mandi in Madhya Pradesh, maize was sold at Rs 1,121 per quintal, while Rajasthan’s Nahargadh mandi recorded Rs 1,100. Bihar reported one of the lowest prices at Rs 900 per quintal. This is far below the MSP of Rs 2,400 per quintal. Government data shows that the estimated cost of producing one quintal of maize is Rs 1,952, meaning farmers are suffering consistent losses.
Jat said the government’s new ethanol policy is benefiting only private producers. “The benefits of ethanol production are being directly transferred to 779 industries, leaving farmers at the mercy of the market,” he said. For the 2025–26 season, the government plans to procure 1,048 crore litres of ethanol for blending with petrol under the E20 programme. More than 72 per cent of this ethanol will be made from maize, with the rest coming from sugar.
India currently produces 422.81 lakh tonnes of maize across more than 120 lakh hectares, contributing three per cent of global output. The United States, the world’s largest producer, accounts for 35 per cent. Traders believe India may soon allow maize imports from the US, just as it did with cotton, which is contributing to the panic among domestic farmers.
According to calculations by the Kisan Mahapanchayat, ethanol made from maize would cost around Rs 54.52 per litre if the maximum maize price is set at Rs 1,821 per quintal. Farmers argue that this pricing structure keeps industries profitable but leaves growers in severe distress.
Protesting farmers have urged the government to intervene immediately, open procurement centres, and guarantee a price of at least Rs 3,000 per quintal to prevent further losses and suicides.
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Source : The Observer Post
