The ethanol industry is not competing with any specific sector for maize but is utilsing the hardy cereal to create value for Indian agricultural resources. It is also intended to support energy security and rural value chains, All India Distillers’ Association (AIDA) deputy director-general (DDG) Bharati Balaji has said.
“Current data also show that ethanol is drawing from a diversified basket that includes surplus FCI (Food Corporation of India) rice, damaged foodgrains and sugar-based feedstocks. Going forward, continued improvement in maize productivity, supply-chain efficiency, availability of alternative feedstocks and better alignment between agricultural output and industrial demand can help ensure that different end-use sectors are adequately supported,” she told businessline in an email interview.
Maize has become an important feedstock for ethanol, and its growing use reflects the expansion of India’s domestic biofuel ecosystem. At the same time, maize serves multiple sectors, including food, feed and industrial applications, so price movements are influenced by the overall balance between production, consumption, stocks, logistics and market demand, said the AIDA DDG.