Maize farmers fail to recover cost as prices plummet amid ethanol rush

CONTRARY to the government’s claim of transforming farmers from food providers to energy providers, India’s ethanol production, particularly from maize farmers, is creating a crisis situation for farmers.

- JITENDRA CHOUBEY @New Delhi

The price of maize has dropped to nearly half of the fixed minimum support price (MSP), while the production cost of ethanol remains significantly higher than the established base price.

Ramapal Jat, president of the farmers’ organisation Kisan Mahapanchayat, highlighted the difficulties faced by maize farmers in the country. He explained that the price of maize has plummeted due to speculation regarding cheaper imports from the US, allowing ethanol manufacturers to profit significantly.

“The market price of maize has dropped to around Rs 900, which is well below both the MSP and the production cost,” he stated.