Maize crop setback will increase ethanol cost of production, not production cuts
India’s maize acreage is down nearly 10% as of 24 July, raising concerns over ethanol feedstock availability. Industry expects maize to remain the leading ethanol feedstock, though its share may decline, with FCI rice likely to play a larger role despite higher production costs.
As on 24th July, the All-India maize crop acreage is reportedly below 10%. The top States where the acreage is down are- Maharashtra (- 15.6%), Karnataka (34%), UP (37%), Jammu and Kashmir (11%), Gujarat (30%), Telangana (25%), Odisha (34%), Tamil Nadu (48%) and Mizoram (83%).
The maize crop is an important feedstock for the country’s ethanol blending programme. In last couple of years, maize is the main supplier of ethanol. In the 2024-25, Ethanol Supply Year, maize constituted for about 48% of ethanol supply, a whopping number.
However, considering the current drop and acreage and resultant production, experts are saying that rice might have to step in as a chief ethanol supplier going forwards.
Arushi Jain, Joint Secretary of Grain Ethanol Manufacturers Association (GEMA) said that Maize will continue to remain the leading feedstock with some drop in its overall share. “The drop in crop from acreage, yields could amount to 10% drop in total output. Maize will remain leading ethanol feedstock,” she said.
Regarding the cost impact of this acreage shrinkage in Maize, Jain said “ The cost of grain is the main cost of ethanol. Pricing of grain is greatly influenced by grain fluidity in the market, which is also influenced by availability of FCI rice”.
She said even if the drop in Maize acreage continues, ethanol will be produced by ethanol producers at any cost of grain. “Reducing production or keeping plants shut is certainly not an option. Impact will be in cost of production of ethanol,” she added.
To Read more about Ethanol Industry & Bio Energy News continue reading Agriinsite.com
Source : ChiniMandi
