Maize is now India's most expensive ethanol feedstock by government-set price — ₹71.86 a litre, ahead of sugarcane juice, rice, and every grade of molasses — and maize-based ethanol volumes went from zero to nearly 500 crore litres in three years. But this kharif season, actual maize acreage fell 9.7 per cent. The demand-side price signal and the on-the-ground planting decision are currently pointing in opposite directions, and this piece sets that against what rice, wheat, and sugarcane acreage did over the same period.
₹71.86 a Litre: Why Maize Is India's Priciest Ethanol Feedstock, Even as This Season's Acreage Falls
The pattern in one line: the ethanol programme has made maize the highest-priced feedstock the OMCs buy, and maize-ethanol volume went from nothing to nearly 500 crore litres in three years — a real, structural demand pull. But India's farmers didn't plant more maize this kharif; they planted 9.7 per cent less. The price incentive and the acreage decision are telling two different stories at once, and both are real.
Measured against each crop's own most recent sowing-season snapshot, the picture across India's major crops is genuinely mixed — not a uniform shift toward or away from any one of them.
| Crop | Season | Latest acreage | Prior year | Change |
|---|---|---|---|---|
| Rice (paddy) | Kharif 2026 (as of 24 Jul) | 234.43 lakh ha | 240.62 lakh ha | −6.19 lakh ha |
| Wheat | Rabi 2025-26 (final) | 341.57 lakh ha | ~328–334 lakh ha (varies by progress-report date) | Up, per PIB's final release |
| Sugarcane | Kharif 2026 (as of 14 Aug) | 58.31 lakh ha | 58.62 lakh ha | −0.31 lakh ha (essentially flat) |
| Maize | Kharif 2026 (as of 24 Jul) | 77.79 lakh ha | 86.15 lakh ha | −8.36 lakh ha (−9.7%) |
Wheat is a rabi (winter) crop and maize/rice/sugarcane figures above are kharif; the four aren't measured in the same sowing window, so this table compares each crop's own most recently completed reporting cycle rather than one common date. This blog's earlier piece on sugarcane specifically used the same 58.31 lakh hectare figure as of 14 August; a slightly earlier snapshot (24 July) had shown 57.58 lakh hectares, consistent with acreage still being added through the sowing window at that point in the season.
A single season's acreage move only makes sense against the longer trend. Government (Directorate of Sugarcane Development) data for sugarcane's own five-year run shows area rising from 46.03 lakh hectares in 2019-20 to a peak of 58.85 lakh hectares in 2022-23, before easing slightly to 57.40 lakh hectares in 2023-24 — this season's essentially-flat figure is a plateau after that run-up, not a new direction. Yield over the same five years moved from 80.49 to a peak of 84.91 tonnes/hectare (2021-22), before slipping back to 78.95 tonnes/hectare in 2023-24, a decline industry commentary has linked to weather and ageing cane stands in older-growing regions.
Maize's structural trend runs the opposite way to this season's dip. Per DA&FW's own figures on the government's UPAg (Unified Portal for Agricultural Statistics) portal, all-India maize area rose from 96.33 lakh hectares in 2016-17 to 120.17 lakh hectares in 2024-25 (third advance estimate) — a near-unbroken nine-year climb, with a brief dip in 2017-19 the only interruption. Production rose even faster over the same span, from 259.0 to 422.81 lakh tonnes, because yield rose too: from roughly 2.69 tonnes/hectare in 2016-17 to a peak of 3.54 in 2022-23, computed directly from DA&FW's own area and production figures. Industry reporting attributes the acreage climb largely to better market prices and the ethanol programme's demand pull, with maize accounting for 42.74 per cent of total ethanol feedstock volume in 2023-24, ahead of both sugarcane and rice.
UPAg's own 2025-26 row (4.32 lakh hectares, 32.66 lakh tonnes) is excluded from both charts above — it is clearly a very early, partial-year figure (the site's own screenshots of this dataset show a matching sudden drop to near-zero for 2025-26 across both area and production), not a genuine 95-per-cent collapse, and is not comparable to the completed prior years shown. This piece's Section 1 table separately compares in-progress 2026-27 kharif sowing (as of 24 July) against the same date a year earlier — a partial-season snapshot can legitimately show a year-on-year decline even while the completed 2024-25 season set a multi-year high, since sowing continues for weeks after any given snapshot date. The two data points describe different, non-contradictory moments in the sowing calendar.
Maize is the only one of the four crops with a clear, double-digit percentage decline this season. The national drop of 9.7 per cent hides much sharper state-level falls: Uttar Pradesh's maize area fell 37 per cent, Karnataka's 34 per cent, Maharashtra's 16 per cent, and Rajasthan's 3 per cent. Madhya Pradesh was the lone major maize state to buck the trend, with acreage up 8.2 per cent to 25.61 lakh hectares — making it, on this season's numbers, the state increasingly carrying India's maize supply relative to its traditional leaders.
The ethanol price OMCs pay is set by the government, differentiated by feedstock, and maize now sits at the top of that scale. Per figures the government itself supplied in response to Parliament questions, covering ex-mill prices (excluding GST and transport) through ESY 2025-26 (to June 2026):
| Feedstock | Ex-mill price (₹/litre) | Trend since ESY 2020-21 |
|---|---|---|
| Maize | 71.86 | New category from ESY 2024-25; already the highest-priced feedstock |
| Sugarcane juice / sugar / syrup | 65.61 | Flat since ESY 2022-23 |
| Damaged food grains | 64.00 | Flat since ESY 2023-24 |
| B-heavy molasses | 60.73 | Flat since ESY 2023-24 |
| Surplus FCI rice | 60.32 | Up from ₹56.87 (ESY 2020-21) |
| C-heavy molasses | 57.97 | Up from ₹45.69 (ESY 2020-21) |
Maize's price premium over every other feedstock is the direct policy lever behind the demand-side story: it pays millers and grain processors more per litre to convert maize into ethanol than to run any other feedstock through the same process, C-heavy molasses included by a wide margin.
Maize-based ethanol supply to OMCs went from zero in ESY 2021-22 to 498.49 crore litres in ESY 2024-25 — the fastest-growing feedstock category in the entire programme by a wide margin, and a meaningful share of the sector's overall growth. Total ethanol receipts by the three PSU OMCs (BPCL, HPCL, IOCL combined) grew from 295.55 crore litres in ESY 2020-21 to 1,040.08 crore litres in ESY 2024-25 — with combined PSU OMC spending on ethanol procurement rising from ₹17,705 crore to ₹74,004 crore over the same period. Grain-based feedstocks (maize plus rice) are now supplying more ethanol capacity than the programme currently needs: for ESY 2025-26 Cycle 1, OMCs received supply offers totalling 1,776.49 crore litres — of which 1,304.86 crore litres came from grain-based feedstock alone — against a stated requirement of roughly 1,050 crore litres for that cycle, an oversubscription of more than 70 per cent.
That oversupply of tendered capacity is the context this season's maize-acreage dip needs to sit inside: the ethanol programme's grain-processing and distillation capacity has already been built out well ahead of what a single season's lower planting can meaningfully constrain, at least for this cycle. Whether next season's planting decisions respond to the price incentive more than this one did is a genuinely open question this piece can't answer in advance.
Maize isn't competing only against itself for acreage — it's also competing against rice and sugarcane on the supply side of the ethanol equation. The government has separately cut the mandatory buffer-stock reserve requirement for rice from 25 per cent to 10 per cent, freeing up more surplus and broken rice specifically for ethanol distillation, at a price (₹60.32/litre) below maize but with its own large, government-controlled supply base through FCI. Sugarcane, meanwhile, has moved the opposite direction this season: as this blog's own reporting on this month's sugar-price spike found, sugar prices at ₹55.70/kg are now making mills prefer selling cane as sugar over diverting it to ethanol, even though sugarcane juice/syrup's ethanol price (₹65.61/litre) sits well above rice's. Three different feedstocks, three different sets of pressures — maize pulled by the highest price on offer but held back by this season's planting decisions, rice pushed forward by a specific stockpile-policy change, and sugarcane pulled backward by its own commodity's spot-market price. From April 2026, the destination for all of this is the same: all petrol sold in India carries the E20 (20 per cent ethanol) blend as the mandated standard.
About this article: Researched, written and edited by Umashankar Triplicane Dwarakanathan, with AI research assistance; every figure is meant to trace to the primary source cited. See the Editorial Policy for how sourcing, AI use and corrections work.