Livestock feed industry seeks maize supply protection amid rising ethanol demand
Livestock feed manufacturers seek priority maize allocation as lower acreage, weak rainfall and El Niño risks tighten supplies. Rising ethanol demand could intensify competition, potentially increasing maize prices and raising poultry production costs, as feed relies heavily on maize.
Bengaluru: Livestock feed manufacturers have urged the government to protect maize supplies for the feed sector amid concerns that potential restrictions on sugarcane-based ethanol production could intensify competition for maize between feed producers and ethanol manufacturers, The Hindu businessline reported.
The concern comes as maize availability is expected to remain tight due to lower acreage and the impact of weak and delayed rainfall associated with El Niño conditions.
Divya Kumar Gulati, chairman of the CLFMA of India, said the government should prioritise the feed sector in allocating available maize supplies as the industry depends heavily on the crop, while ethanol producers have alternative feedstocks such as rice and other grains.
“The government has to balance and first take care of this sector, because we have no alternatives to maize. However, for ethanol, there are other grains available,” Gulati said.
He said the industry had repeatedly approached the government seeking measures to secure maize supplies and would continue to make representations. The feed industry would not object to maize being allocated to ethanol producers after ensuring adequate supplies for its own requirements, he added.
Maize acreage declines
Gulati said the outlook for maize production this year had weakened due to a decline in acreage and delayed and inadequate rainfall. He also expressed concern that El Niño could affect crop yields.
According to the Agriculture Ministry’s latest sowing data as of September 11, maize acreage stood at 91.59 lakh hectares, down 2.64% from 94.08 lakh hectares a year earlier.
Karnataka, one of the major maize-producing states, has recorded a 21% decline in acreage to 13.38 lakh hectares from 17 lakh hectares last year. In Maharashtra, acreage has fallen 11% to 12.98 lakh hectares from 14.52 lakh hectares, while Madhya Pradesh has reported a 2% decline to 26.4 lakh hectares from 27 lakh hectares.
Feed industry conducts satellite survey
The feed industry has commissioned a satellite imagery-based survey to assess the maize crop. The survey is currently underway.
Gulati said the first satellite imagery run indicated a 14% shortfall, while the second assessment could show an 8-9% decline as some crops had not yet reached the required growth stage.
Considering the possible decline in yields as well, the industry could face an overall maize deficit of 11-12%, he said.
Gulati said maize production, which was around 45 million tonnes across the kharif and rabi seasons last year, could fall back to 38-39 million tonnes.
“If you give away 9-10 million tonnes, we had it,” he said, referring to the potential allocation of maize for ethanol production.
Maize prices are already ruling at around ₹2,700-2,800 per quintal ahead of the arrival of the new crop and could rise further, Gulati said, warning of severe pressure on the feed sector.
Poultry sector faces direct impact
The US Department of Agriculture’s local office in New Delhi has lowered its estimate for India’s corn production by 10% to 50 million tonnes from 55 million tonnes last year. Weak rainfall has affected kharif acreage, while prospects for rabi and summer crops have also become uncertain, according to the estimate.
Maize is a critical raw material for India’s animal feed industry, particularly poultry feed, where it accounts for around 50-60% of feed formulations.
With ethanol producers also increasing demand for maize, feed manufacturers are facing tighter availability and stronger competition for the crop.
The poultry industry is particularly exposed to higher maize prices because both broiler and layer feed formulations are heavily dependent on maize. Feed accounts for around 60-70% of poultry production costs, meaning higher maize prices can directly affect the cost of eggs and chicken meat.
India’s animal feed market reached 57.73 million tonnes in 2025, registering a compound annual growth rate of 8% between 2020 and 2025. The market is projected to reach 88.96 million tonnes, supported by growth in the livestock sector.
According to CLFMA estimates, the animal feed market is expected to grow at a CAGR of 9.7% during 2026-30.
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Source : ChiniMandi
