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2 clusters · 11 sources · 5 days · First seen · Last updated

India ethanol production and maize demand trends

Overview

India’s ethanol industry is projected to experience significant growth, with demand expected to reach 17.9 billion litres by FY31 if petrol blending reaches 25 per cent. This expansion is driving a shift toward grain-based ethanol, particularly maize, as a primary feedstock. If blending targets move toward E30, demand could reach 21.5 billion litres, potentially exceeding current distillation capacity by approximately 18 per cent.

This increased demand for maize is impacting other sectors, specifically causing a crisis for poultry farmers due to surging maize prices. Retail prices have risen from Rs 12-14 per kg in 2019 to Rs 27-28 per kg. As maize is the primary starch source for poultry, farmers must now choose between absorbing losses or passing costs to consumers.

Experts have warned that if maize cultivation expands at the expense of pulses and oilseeds, the resulting need for food imports might offset the economic benefits of the ethanol programme. Additionally, declining sowing and deficient rainfall could further exacerbate price volatility.

Entities

GlobalData · Ministry of Fisheries, Animal Husbandry and Dairy · Tata Institute of Social Sciences · India · R. Ramakumar

Timeline

  1. [BUSINESS] 8 sources
    Maize demand for ethanol drives up costs for India poultry farmers

    India's poultry farmers face rising costs as maize prices double due to increased demand for ethanol blending under the E20 programme.

  2. [BUSINESS] 3 sources
    India ethanol demand projected to reach 17.9 billion litres by FY31

    India's ethanol demand is projected to reach 17.9 billion litres by FY31 under a 25 per cent blending scenario, potentially requiring new distillation capacity if targets reach E30.

Sources

aljazeera.com · bizrapidx.com · chinimandi.com · english.alsiasi.com · globaldata.com · jamaicainquirer.com · meghalayamonitor.com · newslaundry.com · thefinancialworld.com · thenews21.com · zvornikdanas.com