Maize (corn) prices across India have fallen below the government-declared Minimum Support Price (MSP) of ₹2,400 per quintal, creating unease among farmers. The drop is mainly due to a bumper harvest, a surge in arrivals of the new crop, and reduced demand from the ethanol and poultry feed industries.
Currently, maize is trading between ₹1,300 and ₹2,100 per quintal in various states. Farmers’ associations have urged the government to start procurement at MSP. Taking the lead, the Telangana government has already begun purchasing maize at MSP and plans to buy around 8 lakh tonnes.
1. Record Increase in Maize Production
In the 2025–26 kharif season, the area under maize cultivation increased by nearly 1 million hectares—from 8.43 million hectares last year to 9.49 million hectares this year.
Despite some crop losses due to excessive rainfall in certain regions, overall production is expected to hit a record high. According to the government’s 3rd Advance Estimate (2024–25), maize output in India may reach 422.81 lakh tonnes, up from 376.65 lakh tonnes last year.
2. Reduced Demand from the Ethanol Sector
According to Rahul Chauhan, an analyst at iGrain India, demand from ethanol producers has been subdued this year. The government has allocated 52 lakh tonnes of rice for ethanol production in 2025–26, reducing reliance on maize.
Additionally, alternative feedstocks such as sugar and rice are more readily available, further affecting maize demand.
The ethanol by-product DDGS (Distillers’ Dried Grains with Solubles)—a key poultry feed ingredient—has also become abundant, decreasing the poultry industry’s dependence on maize.
3. Sharp Price Drop in Maharashtra
Maharashtra’s key maize-producing districts, Jalna and Sangli, have witnessed a steep decline in prices compared to last year.
In October 2024, maize was sold at ₹1,900–2,300 per quintal in Jalna and ₹2,350–2,450 in Sangli. This year, Jalna’s mandi price has fallen to a model rate of ₹1,450, with a low of ₹950 and a high of ₹1,800 per quintal.
Local farmer Baba Sawant explained, “Although heavy rains damaged some crops, more farmers planted maize this year. The increased supply is pushing prices down.”
Industry Voices: Need to Raise Ethanol Price from Maize
Agro-industrialist P. P. Pawar noted that maize prices were higher last year due to strong ethanol demand. He said, “This year, more rice and sugarcane are being used for ethanol. If the government raises the ethanol procurement price for maize-based ethanol, farmers could at least earn at MSP levels.”
Telangana Steps Up Procurement
To support farmers facing low market prices, the Telangana government has decided to buy 8 lakh tonnes of maize out of the state’s estimated 11.5 lakh tonnes production.
So far, 20,584 quintals of maize worth ₹50 crore have been purchased across 123 procurement centers, with the process expected to continue until December 15.
Recently, Cyclone ‘Montha’ caused significant damage to maize crops in Andhra Pradesh and Telangana. In response, State Agriculture Minister Tummala Nageswara Rao has urged the central government to include maize under the Price Support Scheme (PSS).
In a letter to Union Agriculture Minister Shivraj Singh Chouhan, he wrote, “The state has launched a ₹2,500 crore maize procurement plan to support farmers, but we have not yet received any help from the Centre.”
Market Outlook: Temporary Dip, Likely Rebound Ahead
According to Naveen Pasuparthy, Vice President of the Compound Livestock Feed Manufacturers Association (CLFMA), both harvesting and production have been excellent this season.
He added, “The bumper crop has led to a temporary fall in prices, but we expect a recovery soon as the feed industry begins active buying at these levels.”
