Ethanol and maize price crash sparks uproar in Bihar Assembly
Bihar Assembly raised concerns over falling maize prices as lower ethanol procurement reduced demand by 11 crore litres. Prices dropped nearly 50%, impacting farmers’ incomes. The government assured no plant closures, expecting procurement to resume soon, which should boost ethanol output, stabilise maize prices, and support farmer earnings.
Ethanol and maize prices took centre stage in the Bihar Legislative Assembly on Monday, as ruling party legislators questioned the government over falling maize rates and reduced demand from ethanol plants, News4Nation reported.
JDU MLA Komal Singh from Gaighat raised the issue in the House, stating that maize prices have dropped by nearly half as ethanol plants have reduced purchases. He said the decline in demand has caused significant losses to farmers across Bihar.
Replying to the concerns, Industry Minister Dilip Jaiswal assured the Assembly that no ethanol plant in the state would be closed. He said that after the issue was flagged in the House, a Bihar government delegation met the Union Petroleum Minister to discuss the matter. The minister informed members that Bihar has 11 dedicated ethanol plants with agreements with the Centre. Oil marketing companies earlier procured 46 crore litres of ethanol from these units, but purchases have declined by around 11 crore litres this year. He added that procurement would resume soon.
Jaiswal further clarified that eight other ethanol plants in the state do not have agreements with the Centre, and their purchase and sales arrangements are not handled by the Union Government. He also dismissed reports on social media about plant closures, calling them baseless.
Backing Komal Singh’s remarks, Chhatapur MLA Neeraj Bablu also raised concerns about the fall in maize prices. Kanti MLA Ajit Kumar suggested that maize should be bought at a minimum support price through PACS to protect farmers’ interests.
The Industry Minister said ethanol production in Bihar is largely dependent on maize, and the shortfall of 11 crore litres in production this year has directly led to lower maize prices. He expressed confidence that prices would recover once ethanol output increases. He also announced that a maize-based food processing unit worth around ₹3,000 crore would soon be established in the state, which he said would provide direct benefits to farmers.
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Source : Chinimandi
