Poultry industry adversely affected by biofuel program

26-Jun-2025 08:40 PM

New Delhi. The ambitious program of blending ethanol in petrol, initiated by the government to reduce dependence on crude mineral oil imports and to promote the use of clean and green energy, is commendable in principle but is indirectly affecting small poultry producers.

The primary reason is the rapidly increasing use of maize in ethanol production. Maize is also a key raw material for poultry feed, and poultry producers face significant challenges when its price rises.

Due to the high price of maize, the cost of poultry feed has increased by up to 40 percent, which small poultry farmers are finding difficult to absorb.

As the biofuel program continues to expand, the demand and consumption of maize for ethanol production is expected to grow significantly, sustaining an environment of strong prices.

Previously, the poultry industry had access to sufficient quantities of maize at affordable prices, and both the animal feed and starch manufacturing industries faced no shortage.

Additionally, a substantial volume of maize was being exported from the country. However, with the growing industrial use of maize, the balance in the maize market has started to deteriorate, leading to increased price competition and supply constraints across sectors.