Uttar Pradesh: Ethanol plants drive surge in wet maize demand, creating new market for farmers
Rising ethanol demand is boosting wet maize purchases in Uttar Pradesh, with Gujarat plants buying grain containing 30–40% moisture. Daily arrivals reached 15,000 quintals, supporting farmers. Zaid maize area exceeded targets by 35%, while official MSP procurement remains limited due to moisture.
Aligarh: Rising demand from ethanol producers is reshaping the maize market this season, with even wet maize containing 30 to 40 per cent moisture being purchased in large quantities and providing farmers with a reliable outlet for their crop.
Farmers who previously feared that high-moisture maize would attract limited buyers are now finding strong demand, particularly from ethanol manufacturing units in Gujarat. The growing industrial requirement has helped ease concerns over crop sales and improved market confidence, Amar Ujala reported.
Alongside ethanol demand, beer manufacturing units in Punjab, Haryana and Uttar Pradesh are also sourcing wet maize, further strengthening procurement activity.
Market arrivals at Dhanipur Mandi have increased significantly, with nearly 15,000 quintals of maize reaching the market daily. Traders estimate that more than half of this quantity is being procured for industrial use, led by ethanol and beverage manufacturers.
Local commission agents are facilitating supplies from Aligarh to ethanol facilities in Ghata, Gujarat, while additional purchases are being made for industrial use in other regions, including a processing unit at Sikandrarau.
Dry maize continues to be purchased separately by food processing companies manufacturing products such as dalmoth, popcorn, gram flour, savoury snacks and multigrain flour, adding another layer of demand to the market.
Procurement activity extends across Aligarh, Hathras, Etah and Kasganj districts, with traders reporting a sharp rise compared with 2025, when industrial purchases remained comparatively limited.
During the Zaid season, maize cultivation in Aligarh division covered around 1,02,410 hectares, exceeding the targeted area by nearly 35 per cent. Production is estimated at approximately 68.61 lakh quintals, although no official output figures have been issued because crop-cutting exercises are not conducted for Zaid crops.
Leading commission agent Yogendra Pal Singh Lalu said ethanol plants in Gujarat have emerged as major buyers of wet maize this year, accepting grain with moisture content of up to 40 per cent. He added that beer plants in Uttar Pradesh, Punjab and Haryana are also actively procuring the crop.
Vicky Gupta, General Secretary of the First Grain Traders and Farmers Welfare Committee, said large-scale purchases by ethanol and beer industries have increased market demand and improved selling opportunities for farmers.
Joint Agriculture Commissioner Shravan Kumar said average maize productivity ranges between 65 and 70 quintals per hectare and noted that continued procurement of wet maize is expected to benefit growers.
Meanwhile, Marketing Officer Monica Maheshwari said the minimum support price for maize remains fixed at Rs 2,400 per quintal. Against the procurement target of 7,500 quintals, around 2,013 quintals have been purchased so far, although higher moisture levels prevented procurement of some produce under official channels.
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Source : ChiniMandi
