Record Maize Acreage in Kharif Season Driven by Ethanol Push and Strong Market Demand in Key States by Amit Gupta, Kedia Advisory
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India's maize cultivation has seen a significant boost this kharif season, driven by the government’s push for ethanol blending. Acreage under maize has increased by 5.31% to 87.26 lakh hectares, with Maharashtra and Madhya Pradesh leading the expansion. Market prices are hovering between ?2,400-2,500 per quintal, well above the minimum support price (MSP) of ?2,225, further encouraging farmers. Despite early challenges from fall armyworm pests, crop conditions remain healthy, with higher yields expected due to favorable rains. The rising demand from the ethanol industry, particularly for E20 blending targets, continues to support maize's strong price performance, making it a new favorite crop for Indian farmers this season.
Key Highlights
# Maize acreage rises by 5.31% to 87.26 lakh hectares this kharif season.
# Ethanol blending targets spur demand, driving up maize prices above MSP levels.
# Maharashtra and Madhya Pradesh witness significant increases in maize cultivation.
# Farmers overcome fall armyworm pest, ensuring good crop conditions.
# Higher market prices of ?2,400-2,500 per quintal boost farmer interest in maize.
Maize cultivation in India has reached record heights during the kharif season, largely driven by the government’s push for ethanol blending and expansion of feedstock. As of September 6, maize acreages stand at 87.26 lakh hectares, a 5.31% increase compared to last year’s 82.86 lakh hectares. The major growth in cultivation has been observed in Maharashtra and Madhya Pradesh, where acreages rose by 23% and 16%, respectively. Other states like Karnataka, Rajasthan, and Uttar Pradesh have also contributed to the expansion, although marginally. However, states like Telangana and Odisha have seen a slight decline in maize planting.
The price performance has been a major attraction for farmers. The market prices of maize are currently above the minimum support price (MSP) of ?2,225 per quintal, ranging between ?2,400 and ?2,500 per quintal across various markets. This price support, coupled with strong demand from the ethanol industry, has encouraged farmers to increase maize cultivation. The E20 blending targets are expected to continue driving demand for maize as a primary feedstock, ensuring robust price performance going forward.
Despite challenges such as the fall armyworm pest, farmers have effectively managed the issue, securing healthy crop conditions. Experts predict higher yields this year, thanks to favorable rains and good crop health.
Finally
With strong price performance and rising demand, maize farmers are set to benefit from this season's expanded acreage and favorable market conditions.
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