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₹71.86 a Litre: Why Maize Is India's Priciest Ethanol Feedstock, Even as This Season's Acreage Falls

August 21, 2026

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.

Agriculture & Food Processing · Ethanol & Biofuels · 21 August 2026

₹71.86 a Litre: Why Maize Is India's Priciest Ethanol Feedstock, Even as This Season's Acreage Falls

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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.

1. The four-crop acreage scoreboard

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.

CropSeasonLatest acreagePrior yearChange
Rice (paddy)Kharif 2026 (as of 24 Jul)234.43 lakh ha240.62 lakh ha−6.19 lakh ha
WheatRabi 2025-26 (final)341.57 lakh ha~328–334 lakh ha (varies by progress-report date)Up, per PIB's final release
SugarcaneKharif 2026 (as of 14 Aug)58.31 lakh ha58.62 lakh ha−0.31 lakh ha (essentially flat)
MaizeKharif 2026 (as of 24 Jul)77.79 lakh ha86.15 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.

1.5. The five-year trend behind this season's snapshot

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.

Figure 1 · Sugarcane area, all-India, lakh hectares15.931.847.763.646.02019-2048.52020-2151.82021-2258.92022-2357.42023-24Lakh hectares sown
Figure 2 · Sugarcane yield, all-India, tonnes/hectare22.945.968.891.780.52019-2083.62020-2184.92021-2283.32022-2379.02023-24Tonnes per hectare

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.

Figure 4 · Maize area, all-India, lakh hectares (UPAg/DA&FW)32.464.997.3129.896.32016-1793.82017-1890.32018-1995.72019-2098.92020-2199.62021-22107.42022-23112.42023-24120.22024-25*Lakh hectares sown · *2024-25 is 3rd Advance Estimate
Figure 3 · Maize yield, all-India, tonnes/hectare (UPAg/DA&FW)0.961.912.873.822.692016-173.072017-183.072018-193.012019-203.202020-213.392021-223.542022-233.352023-243.522024-25*Tonnes per hectare, computed from Production/Area · *2024-25 is 3rd Advance Estimate

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.

2. Maize is the outlier — and the state-level story explains why

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.

3. What OMCs actually pay, feedstock by feedstock

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):

FeedstockEx-mill price (₹/litre)Trend since ESY 2020-21
Maize71.86New category from ESY 2024-25; already the highest-priced feedstock
Sugarcane juice / sugar / syrup65.61Flat since ESY 2022-23
Damaged food grains64.00Flat since ESY 2023-24
B-heavy molasses60.73Flat since ESY 2023-24
Surplus FCI rice60.32Up from ₹56.87 (ESY 2020-21)
C-heavy molasses57.97Up 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's ethanol price didn't just rise — it started at the top of the scale the moment the category existed, and the volume response was immediate and large. That's a real, working demand signal. It just isn't, on its own, enough to make farmers plant more maize in a season where other factors pulled the other way.
4. The volume surge the price actually bought

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.

5. The competing feedstock landscape

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.

What this piece does not establish. This piece could not directly fetch pib.gov.in's own press release pages (both attempts returned an access error), so wheat's PIB-sourced final acreage figure and the maize/rice/sugarcane progress-report figures are drawn from secondary agricultural-news coverage citing Ministry of Agriculture and UPAg-sourced data, not verified against the primary PIB release text or the UPAg portal's live dataset directly. Wheat's "prior year" comparison in the acreage table is given as a range rather than one figure because different progress-report snapshots (9 January, 29 December, 19 December) gave different partial-season comparison numbers in the sourcing gathered here, and this piece did not resolve them to one figure rather than risk picking the wrong snapshot date to compare against. The ethanol ex-mill price and procurement-volume figures are drawn from the government's own Parliament-question responses as reported by ChiniMandi, not independently cross-checked against the original Lok Sabha/Rajya Sabha reply text. The OMC tender oversubscription figures (1,776.49 crore litres offered vs ~1,050 crore litres required) describe ESY 2025-26 Cycle 1 specifically, not the full-year requirement, and shouldn't be read as meaning the full year is oversupplied by the same margin. This piece does not attempt to establish a causal claim that the ethanol price premium is the reason maize acreage fell this season (multiple factors, including weather, input costs, and competing-crop economics, plausibly contributed and weren't separately investigated here) — it reports the price incentive and the acreage outcome side by side without claiming one directly caused the other. This piece's own attempt to pull data directly from the UPAg (Unified Portal for Agricultural Statistics) crop-profile dashboard was blocked by the dashboard's canvas-based rendering, which exposed no extractable text; the maize area/production series in Section 1.5 instead uses a UPAg data export (DA&FW's own "Historical Area and Production Trends" figures, 2016-17 to 2025-26) supplied directly, which resolved that gap with the actual primary source. UPAg's own 2025-26 row for maize is a partial-year figure (see the note under Figure 4) and is excluded from the charted trend for that reason, not omitted to flatter the series. Maize yield in Figure 3 is this piece's own calculation (Production ÷ Area) from the UPAg export's raw figures, not a separately published DA&FW yield series, and could differ slightly from an official yield figure computed on a different basis (e.g. milled vs unmilled weight conventions). The Section 1 table's ChiniMandi-sourced 2026-27 in-progress acreage figures remain from secondary reporting, not this UPAg export, since the export supplied covers only completed years through 2025-26.
Documents & sources · Kharif 2026 rice, sugarcane, and maize acreage figures, and state-wise maize acreage changes (Uttar Pradesh, Karnataka, Maharashtra, Rajasthan, Madhya Pradesh), per ChiniMandi's "Lower maize acreage may increase ethanol industry's reliance on sugarcane, rice" and global-agriculture.com's coverage of Ministry of Agriculture kharif sowing progress reports. Sugarcane's 14 August acreage figure per ChiniMandi's "Sugarcane area under kharif 2026 dips to 58.31 lakh hectares," also used in this blog's sugarcane/ethanol-diversion piece (see related posts). Wheat's rabi 2025-26 acreage figures per a PIB press release ("Wheat sown area crosses 341.57 lakh hectares") as titled/indexed by search results, and global-agriculture.com's and business-standard.com's coverage of rabi sowing progress at various points in the season; the PIB release itself could not be directly fetched for this piece. Ethanol ex-mill pricing by feedstock and ESY-by-ESY procurement/expenditure figures per ChiniMandi's "Parliament Questions: Government details ethanol production, procurement and pricing since 2020," reporting the government's own response to Parliament questions. ESY 2025-26 Cycle 1 OMC tender offer and requirement figures per iamrenew.com's "OMCs get offer for 1,776 cr litres ethanol while require just 1,050 cr." The rice buffer-stock reduction (25% to 10%) per ChiniMandi's maize-acreage coverage cited above. The E20 mandate from April 2026 per this blog's own prior ethanol-blending reporting. Sugarcane's five-year area, production, and yield figures (Figures 1 and 2) per the Directorate of Sugarcane Development, Department of Agriculture & Farmers Welfare's own published "State wise Area/Production/Productivity of Sugarcane 2019-20 to 2023-24" tables (Final Estimates 2023-24). The 42.74% maize ethanol-feedstock-share figure per Down To Earth's "Area under maize cultivation in India increases sharply, driven by push for ethanol." Maize's nine-year area and production figures (Figures 3 and 4), 2016-17 through 2024-25 (2024-25 is DA&FW's third advance estimate; 2025-26 excluded as a partial-year figure), per a direct UPAg (Unified Portal for Agricultural Statistics) "Historical Area and Production Trends" export citing DA&FW as the underlying source; maize yield in Figure 3 is this piece's own calculation from that export's area and production figures, not a separately published series. Nothing in this piece is agricultural, trading, or investment advice; anyone acting on these figures for a real decision should verify them against the primary UPAg, PIB, or Ministry of Agriculture sources directly, given the sourcing gaps acknowledged above.

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.

Harvested maize cobs in a field in Himachal Pradesh
Maize is now the largest single ethanol feedstock in India. Corn maize harvest in Himachal Pradesh India 2011.jpg, CIAT, CC BY-SA 2.0, via Wikimedia Commons.
Umashankar Triplicane Dwarakanathan
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