India’s drought-hit maize crunch pits poultry, ethanol makers in ‘me first’ fight

Pune: A severe maize shortage, exacerbated by a devastating drought, has sparked intense competition among various industries for limited supply. Poultry farmers, ethanol producers, and starch manufacturers are all pleading with the government to prioritize their respective sectors. Maize serves as a crucial feed source for poultry, a key ingredient in ethanol production, and a versatile raw material for starch and food processing industries.

The grain also plays a significant role in India's efforts to decrease dependence on imported crude oil.

Industry bodies, such as the National Egg Coordination Committee (NECC) and the Grain Ethanol Manufacturers Association (GEMA), have been lobbying the government to secure adequate maize supplies. Oil marketing companies have released their initial tender for ethanol procurement for the upcoming ethanol year, excluding sugar-based ethanol and reducing incentives for maize-based ethanol by Rs 3 per litre.

This decision may inadvertently favor rice-based feedstocks and diminish the importance of maize as an industrial feedstock.

The Grain-Based Ethanol Manufacturers Association (GEMA) expressed concern over the procurement process, warning that it could initially favor surplus foodgrains (SFG) and damaged foodgrains (DFG) before providing any allocations to maize. The industry fears that this may weaken the economics of maize-based production and the market it creates for farmers.

As maize supply tightens and demand surges due to the government's grain-based ethanol blending program, the poultry industry is also facing mounting pressure from rising maize prices. With maize typically comprising 55-60% of poultry feed, competition for the dwindling resource intensifies. Stakeholders, including senior agricultural expert GK Sood, argue that prioritizing maize for food and poultry feed is essential to prevent potential starvation and the need to import starch from China.