Context:
India’s recent drive to boost ethanol production using corn has seen the country transition from being one of Asia’s leading maize exporters to becoming a net importer. This pivot is profoundly affecting local industries dependent on corn and is reshaping the global maize supply chain dynamics.
Relevance:
GS III: Agriculture
Dimensions of the Article:
- India’s Transition to Net Maize Importer
- Local Industry Impact from Increased Maize Imports
- Global Effects of India’s Maize Importation
- About Maize
India’s Transition to Net Maize Importer
- Ethanol Policy Impact: India’s strategic increase in ethanol content to 20% by 2025-26 has surged maize demand for ethanol production.
- Biofuel Policy Support: The 2018 National Policy on Biofuels enhances maize and grain-based ethanol production to fulfill increased demands.
- Climate Influence on Crop Selection: Recent droughts have led to reduced sugarcane usage for ethanol, shifting focus towards maize.
- Production Expansion: In 2023-24, India’s maize production was 34.6 million tonnes, with ambitions to double this to close the supply-demand gap.
- Shift Impacting Agriculture: Utilizing maize for ethanol production has led to India’s first significant maize imports in many years.
Local Industry Impact from Increased Maize Imports
- Primary Industry Consumers: India’s poultry and starch sectors, traditionally major maize consumers, now compete with ethanol producers for resources.
- Economic Pressures: Enhanced maize demand elevates local prices above international levels, straining poultry industries reliant on maize.
- Feed Cost Crisis: Rising costs account for a substantial portion of production expenses, pushing poultry businesses towards financial hardship.
- Calls for Regulatory Changes: The All India Poultry Breeders Association advocates for removing import duties on genetically modified maize to reduce feed costs.
- Agricultural Adjustments: Farmers increase maize planting to capitalize on high prices, though small-scale farms must adjust production based on market fluctuations.
Global Effects of India’s Maize Importation
- Export to Import Shift: Historically a major maize exporter, India now imports primarily from Myanmar and Ukraine, impacting global prices.
- Market Reactions: Increased demand in India boosts maize prices globally, altering traditional trade patterns.
- Supply Chain Shifts: Traditional maize importers from India now seek supplies from South America and the USA due to inflated Indian maize prices.
Strategies to Boost Maize Production
- Tailored Agricultural Enhancements: India’s varied agricultural zones necessitate specific innovations to boost maize yields.
- Biotech Adoption for Resilience: Introducing biotech traits resistant to pests like the fall armyworm and planting high-yield hybrids could significantly improve productivity.
- Water-Efficient Crop Alternatives: Shifting from water-intensive crops like rice to maize could conserve resources and enhance output, particularly in regions like Punjab, Haryana, and Western UP.
- Supportive Policies for Growth: Implementing supportive measures such as reasonable Minimum Support Prices (MSP) and assured procurement through mega cooperatives could stimulate extensive maize cultivation.
- Biofuel and Food Security Synergy: Producing distiller’s dried grains with soluble (DDGS) from ethanol aligns with the E20 ethanol blending target, fostering a sustainable cycle of food, feed, and fuel production.
About Maize
- Known as Zea mays L., maize is celebrated as the “queen of cereals” for its high yield potential.
- It is a major global grain contributor, with the United States leading as the top producer renowned for its high productivity levels.
- Employed across multiple sectors, maize is integral in the production of food, animal feed, and various industrial products.
- It prospers in a diverse array of soil types, from loamy sand to clay loam, preferably with good drainage, high organic content, and neutral pH.
- Productivity is best in areas free from poor drainage and high salinity.
- Optimal growth occurs with annual rainfall ranging from 50 to 100 centimeters.
- Cultivated during the Kharif, Rabi, and Spring seasons, with Kharif crops generally yielding less due to rainfed conditions and related stresses.
- As of December 2023, India is ranked as the fifth largest producer and the fourteenth largest exporter of maize globally for the year 2022.
- Despite year-round cultivation possibilities, a strong seed network, and good seaport access, domestic demand heavily impacts its export capacity.
- Primary Producing Regions: Major maize-producing states include Karnataka, Madhya Pradesh, Bihar, Tamil Nadu, Telangana, Maharashtra, and Andhra Pradesh.
-Source: The Hindu
