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Maize Farmers Suffer Big Losses as Prices Drop Far Below MSP — Ethanol Promise Fades

Farmers who switched to maize this season hoping for better earnings are now facing huge losses. Despite a record increase in maize cultivation across the country, market prices have crashed — falling far below the government’s Minimum Support Price (MSP).

Maize Acreage Up, But Prices Down

In the current Kharif season, maize has been sown on more than 9.5 million hectares, an increase of nearly 12% compared to last year. Many farmers opted for maize over soybean and cotton, encouraged by the government’s ethanol blending program, which had earlier created strong demand for maize.

But this year, prices have plummeted. The main reasons appear to be higher maize output and increased use of rice for ethanol production, reducing the demand for maize from distilleries.

Farmers Getting Half the MSP

According to official data from the Agriculture Ministry’s Agmarknet portal, maize is being sold in most mandis of Madhya Pradesh at just ₹1,200–₹1,400 per quintal, while the MSP for the 2025–26 Kharif season is ₹2,400 per quintal.

  • In Dewas and Harda districts, maize fetched around ₹1,200–₹1,250 per quintal.

  • In Khandwa, it sold for ₹1,200, while Vidisha saw slightly better prices at ₹1,400.

  • In Shivpuri’s Kolaras market, rates dropped as low as ₹1,140 per quintal.

Similar trends are being reported from Rajasthan (₹1,500–₹1,800 per quintal) and Uttar Pradesh, where most markets are also below MSP. Farmers are losing nearly ₹1,000–₹1,200 per quintal, struggling even to recover production costs.

Government Yet to Step In

Kedar Sirohi, president of the Madhya Pradesh Congress Kisan Cell, said farmers were encouraged to grow maize based on government promotion and ethanol-linked hopes, but now they are being abandoned.
“The state has neither started procurement nor announced any price compensation under the Bhavantar Yojana,” he said.

Protests Erupt Over Price Crash

In Madhya Pradesh, angry farmers have begun protests, alleging that traders are further cutting prices by citing excess moisture in the crop. In Khandwa, farmers blocked the Indore Road demanding government intervention.

A Double Blow for Farmers

Heavy rains this year have already damaged crops like soybean and maize. Now, the crash in prices has left farmers in deeper distress. Many are questioning the effectiveness of the ethanol blending program — once seen as a saviour for maize growers.

Future at Risk

Maize is a key raw material for animal feed and biofuel industries. If farmers continue to incur such losses, they may shift to other crops next season, which could also disrupt the supply for these sectors.

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