Maize demand for ethanol drives up costs for India poultry farmers

India’s poultry farmers are facing a crisis due to rising maize prices, driven by the increasing demand for ethanol blending. While maize was priced between Rs 12-14 per kg in 2019, retail prices have surged to Rs 27-28 per kg.

As the primary starch source for poultry, the rising cost of maize forces egg-layer and broiler farmers to either absorb losses or pass costs to consumers. The contribution of maize to ethanol blending is projected to rise from 0% in 2021-22 to approximately 37% by 2025-26 as part of the E20 programme, which aims to reduce fossil fuel imports.

Experts and farmers warn that declining sowing and deficient rainfall could exacerbate the situation. Agriculture expert R. Ramakumar noted that if maize cultivation expands at the expense of pulses and oilseeds, the resulting need for imports might offset the economic gains of the ethanol programme.