Livestock feed makers see rising competition for maize from ethanol producers

Feed industry leaders, represented by CLFMA of India chairman Divya Kumar Gulati, cautioned that potential restrictions on sugarcane‑based ethanol are prompting ethanol makers to turn to maize, heightening competition for the grain that underpins animal feed. The association appealed to the government to prioritise maize allocation for feed, noting that unlike ethanol, the sector lacks viable alternative feedstocks.

Government sowing data released on September 11 showed maize cultivated on 91.59 lakh hectares, a 2.64 percent decline from the previous year’s 94.08 lakh hectares. Karnataka’s maize area fell 21 percent to 13.38 lakh hectares, Maharashtra’s dropped 11 percent to 12.98 lakh hectares, and Madhya Pradesh’s slipped 2 percent to 26.4 lakh hectares. Satellite‑imagery surveys indicate a current shortfall of 8‑14 percent, potentially rising to an overall deficit of 11‑12 percent, which could cut total production from roughly 45 million tonnes last season to 38‑39 million tonnes. Maize prices have already surged to Rs 2,700‑2,800 per quintal, and the USDA’s New Delhi office trimmed India’s corn output forecast by 10 percent to 50 million tonnes.

Maize accounts for 50‑60 percent of poultry feed formulations, and feed costs represent 60‑70 percent of poultry production expenses, meaning any price spike directly affects egg and chicken meat prices. The Indian animal‑feed market, which reached 57.73 million tonnes in 2025 and is projected to expand to 88.96 million tonnes, is driven by livestock growth but now faces a supply crunch that could translate into higher consumer prices and operational strain for feed manufacturers.