Ethanol Push Drives Maize Prices Up, Strains Poultry Farmers

In Ghazipur, nestled along the Ganges in northern India, farmer Satyadev Prajapati observes a drastic reduction in egg production from his 350 hens. The soaring feed costs, up by 40%, are to blame. India's ambitious biofuel plan, aiming to achieve a 20% ethanol blend by 2025, has intensified maize competition, leaving small poultry producers struggling.

The increase in ethanol production, targeting both energy security and emission reductions, has saved India significantly on oil imports and reduced carbon emissions. However, this upsurge in maize-based ethanol production, which rose sharply between 2022 and 2024, now consumes about a third of India's maize crop, directly affecting the poultry sector.

Faced with spiraling costs, farmers like Prajapati resort to cheaper feed options, further hindering egg production. With little governmental support, small poultry farmers find themselves vulnerable as maize prices continue to rise. Experts advocate for the development of second-generation biofuels to ease the strain on food systems and support sustainable ethanol production.

(With inputs from agencies.)