India’s growing use of maize for ethanol production is putting additional pressure on poultry farmers, as the crop is one of the main ingredients in poultry feed. Maize’s contribution to India’s ethanol production rose from 0% in ESY 2021-22 to around 37% in ESY 2025-26, according to the government. At the same time, maize demand from poultry, starch and other industries continues to rise.
Government data shows that 125.75 lakh tonnes of maize were used for ethanol production in ESY 2024-25, while a similar 125.78 lakh tonnes was allocated for ESY 2025-26. The Centre has maintained that domestic maize availability is sufficient to meet the requirements of ethanol, poultry feed and other sectors. Maize production reached about 434 lakh tonnes in 2024-25, according to a Lok Sabha reply. However, poultry farmers and industry representatives say the rapid growth in ethanol demand is increasing competition for the crop. 
Maize accounts for roughly 50-55% of poultry feed, while soybean meal is another major component. Recent reports from poultry-producing regions show that maize prices have risen sharply. In Tamil Nadu’s Namakkal poultry belt, for example, farmers reported prices increasing from around ₹22 per kg to nearly ₹30 per kg over the past year. Industry representatives said the increase has pushed up feed costs and could further affect egg and poultry production costs if supplies tighten.
The impact is particularly important because feed accounts for a large share of poultry production costs. Rising maize prices therefore directly affect the economics of both layer and broiler farms. Recent industry reports have also linked higher feed costs with a 35-40% rise in egg prices over the past year, although ethanol diversion is only one of several factors affecting egg prices. Seasonal demand, soybean prices, weather conditions, disease and poultry supply also influence the market.
The issue has created a growing debate over the balance between fuel demand and food/feed demand. The government argues that increased maize production can support ethanol as well as poultry and other industries, while poultry stakeholders are seeking higher maize production and adequate feed availability. With maize increasingly becoming an important ethanol feedstock, expanding cultivation and improving productivity could be crucial to meeting the requirements of both the E20 programme and India’s poultry sector.
