GEMA urges government to realign maize-based ethanol prices amid rising MSP
The Cabinet’s hike in maize MSP to ₹2,400 per 100 kg for 2025–26 has raised concerns among ethanol producers and poultry farmers. Ethanol makers cite rising input costs without corresponding price support, risking viability. Poultry farmers warn of increased feed costs, stressing the absence of MSP for poultry products, which could squeeze margins and affect production.
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, yesterday approved a hike in the Minimum Support Price (MSP) for several kharif crops, including maize, for the 2025-26 marketing season. The MSP for maize has been raised from Rs 2,225 to Rs 2,400 per 100 kg.
Maize, a key raw material for India’s grain-based ethanol sector, now faces increased input costs due to the MSP hike. However, the price for maize-based ethanol remains unchanged, creating concern among ethanol producers.
The Grain Ethanol Manufacturers Association (GEMA) has highlighted the disconnect between rising maize costs and stagnant ethanol prices. Dr. C K Jain, GEMA President, told ChiniMandi, “While we support fair pricing for farmers, the recent hike in maize MSP raises input costs for the grain-based ethanol sector. Maize prices are increasing significantly, whereas the price of maize-based ethanol has remained at Rs 71.86 per litre. To maintain the viability of ethanol production and ensure continued investment in the biofuel economy, it is imperative that maize-based ethanol prices be increased proportionately. Without such alignment, the sustainability and competitiveness of the sector could be affected.”
The industry points out that government initiatives to boost maize use for ethanol blending have increased maize demand, pushing prices upward. Yet, ethanol procurement prices have not risen accordingly, squeezing margins and threatening production sustainability.
The rising maize prices are also expected to impact starch-based industries that rely heavily on maize as a raw material, affecting their margins and potentially hindering production capacity.
In Maharashtra, where maize is a major component of poultry feed, the Poultry Breeder & Farmer Association (PF&BA) has expressed concerns over the rising cost.
“The rise in maize MSP will directly increase our production costs, as maize is a key part of poultry feed,” said Sanjay Nalgirkar, President of the PF&BA. “Unlike maize, our chicken doesn’t have any MSP or price support. This puts more pressure on poultry farmers.”
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Source : Chinimandi
