Maize Cultivation Booms In Southern States Amid Ethanol Push; Telangana, Andhra See Rise In Acreage

Hyderabad: With ethanol industries aggressively entering the market, demand for maize, the third-largest food crop in India after rice and wheat, has gone up significantly over the last few months.

As per agricultural industry sources, a whopping 70 percent of the crop was purchased by ethanol producers in 2024-25. Experts are of the opinion that this demand will further grow in the coming years.

Maize accounts for nine percent of the country's food consumption, and is grown largely in the monsoon season (80 percent) with the remaining 20 percent in the dry season. Traditionally, maize has been a versatile raw material used in bread flour, biscuits, popcorn, medicines, cosmetics, textiles, adhesives, alcohol, packaging, paper and animal feed.

While almost half of the country's maize used to go into poultry and cattle feed, the entry of ethanol producers over the last four years has transformed the market. Moreover, the Central government's decision to blend 20 percent ethanol in petrol spurred large-scale purchases. Despite having alternatives such as cotton stalks and sugarcane bagasse, ethanol manufacturers have focused heavily on maize.

In 2023-24, maize overtook sugarcane and rice to contribute 42.74 percent of India's ethanol production. Purchases grew from 7.5 million tonnes in 2024 to an expected 13.3 million tonnes this year, equivalent to 70 percent of the total maize output. This demand has consequently lifted maize prices above the government's support price.

Telugu States Record Higher Sowing

Central government data suggests that maize has been sown in 91.89 lakh hectares across India in the 2025-26 monsoon season, up 10.5 percent from last year's 83.15 lakh hectares, and 16.3 percent higher than the five-year average.

• Telangana: Maize was sown in 6.27 lakh acres, exceeding the target by 120 percent.
• Andhra Pradesh: Sowing covered 3.58 lakh acres, a 139 percent increase over last year.

Apart from this, seed production has also risen, with companies tying up with farmers for 60,000 acres of maize seed cultivation.

Among all states, Karnataka leads in maize cultivation, while Telangana and Andhra Pradesh rank fifth and seventh, respectively.

Pressure On Poultry Sector

While ethanol industries are driving up prices, poultry and food sectors are feeling the pinch. With only 30 percent of the crop left for feed and other industries, supply shortages have hit the poultry farmers hardest. Industry bodies have now urged the government to expand maize cultivation further to balance the demand between ethanol producers and traditional users.

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