Use of maize rises in ethanol production, sugar's role declines

25-Jun-2025 09:13 AM

Use of maize rises in ethanol production, sugar's role declines
★ Maize is increasingly being used in ethanol production in India. To meet the government’s target of 20% ethanol blending in petrol by 2025, maize has emerged as a key raw material.
★ In the 2024-25 ethanol supply year (November 2024 to October 2025), around 6.50 billion litres of ethanol are expected to be produced from grains, with maize having the highest share. In contrast, only about 2.50 billion litres are likely to come from sugarcane.
★ With this rise in maize-based ethanol, the availability of DDGS (Dried Distillers Grains with Solubles) — a by-product of maize processing — has also increased. DDGS is now increasingly replacing soymeal in livestock feed.
★ Due to strong demand and good market prices, maize production has surged over the past two years. Even in the current kharif sowing season, maize acreage is showing noticeable growth.
★ In the current sugarcane crushing season, which is nearing its end, sugar output has been lower due to various reasons. As a result, more sugarcane has been diverted to ethanol production.
★ Looking ahead, much will depend on the next sugarcane crop. Until then, maize demand is expected to remain strong. However, domestic maize stocks are currently high, which could put intermittent pressure on prices.
★ Meanwhile, the US is reportedly pressuring India to allow imports of maize for ethanol production. It remains to be seen how the Indian government responds to this.