August 26, 2025

India's corn output gains traction over ethanol production 

India's corn output could exceed that of cotton and soybean as the government pushes its ethanol fuel blending programme.

The central government's Department of Agriculture shows that farmers have taken corn over 91.89 lakh hectares as against the 83.15 lakh hectares of the last kharif. Corn area has grown by over 8.74 %– the largest growth of any crop this kharif. The growth of corn is synonymous with the decline in soybean area- which has shrunk by 4.73 %. Farmers have sown 119.51 lakh hectares of this kharif as compared to 124.24 lakh hectares of last kharif.

Similarly cotton area has shrunk from 110.49 lakh hectares to the present 106.96 lakh hectares.

Behind the growth lies the fast acceptance of corn as the feedstock for production of ethanol. Dilip Patil, co-chair of the Sugar Bioenergy Forum under the Indian Federation of Green Energy pointed out that the government is actively promoting corn as a feedstock. "The government is actively encouraging farmers to diversify from water-intensive crops like sugarcane to crops like corn for ethanol production. Corn consumes less water and its ethanol production yields a valuable co-product, Dried Distillers Grains with Soluble (DDGS), which is a high-protein animal feed, "he said.

This year, oil marketing companies have floated tenders for ethanol procurement for the blending programme, which was to be produced with corn as the feedstock. Also, ethanol produced from corn and other grains as feedstock has been given a premium price over ethanol produced from sugar or molasses. Corn has become the most favoured raw material, especially in North India. Many distilleries have entered agreements with farmers to directly procure corn from them. All this has led to corn being the crop of choice for farmers.

Sanjeev Asthana, president of the Solvent and Extractors Association (SEA), the edible oil body of the country, commented on the decline in edible oil seeds acreage in the kharif. "As of 15 August 2025, kharif oilseed sowing stands at 178.64 lakh hectares, down 6.74 lakh ha from last year's final acreage of 185.38 lakh ha. The decline reflects a shift in farmer preference toward competing crops such as corn, driven by ethanol and feed demand. While castor seed has shown modest gains, major crops such as soybean and groundnut have seen reductions, signalling the need to reinforce crop profitability and farmer confidence," he said. Soybean prices have been on the lower side for two consecutive years which has propelled many traditional growers to shift towards corn.

-      The Indian Express