India’s maize sector is entering a decisive phase as rising domestic demand from ethanol blending, poultry feed and industrial processing transforms the crop from a traditional cereal into a strategic economic commodity. A new report released by Federation of Indian Chambers of Commerce and Industry (FICCI) and YES BANK projects that India’s maize demand could surge from around 50 million metric tonnes (MT) in 2025-26 to nearly 72 million MT by 2030-31, driven by rapid industrial consumption and the country’s biofuel ambitions.
The report, titled “Maize Sector in India – Navigating Transformation in Demand-Supply Dynamics”, highlights that globally too maize has become one of the world’s most important agricultural commodities, with global production reaching 1.26 billion MT in 2025 and projected to rise to nearly 1.4 billion MT by 2034. Here it is noteworthy that for Kharif 2026, the government has increased minimum support price of maize by just Rs 10 to Rs 2410 per quintal.
India Emerging as Fastest Growing Maize Economy
According to the report, maize production in India has nearly doubled over the past decade, rising from 22.57 million MT in 2015-16 to around 50 million MT in 2025-26. During the same period, maize acreage grew at a compound annual growth rate (CAGR) of 4.5%, while production increased by 8.3% and productivity by 3.6%, significantly outperforming overall cereal growth.
The report states that maize now contributes around 14% of India’s total foodgrain production and is cultivated by nearly 17 million farmers across 27 states. Despite being India’s third-largest cereal after rice and wheat, more than 90% of maize is now consumed for industrial purposes including feed, fuel and starch processing.
India ranks fourth globally in maize acreage and fifth in production. The crop is cultivated across all three agricultural seasons — kharif, rabi and summer — with kharif accounting for 72% of total acreage and 60% of production in 2025-26.
Ethanol Programme Reshaping Maize Demand
One of the biggest drivers of the maize boom is the government’s ethanol blending programme. The report says maize has overtaken sugarcane and rice to become India’s leading ethanol feedstock. During 2024-25, nearly 12.5 million MT of maize was used for ethanol production, accounting for almost 50% of the total feedstock used by the ethanol sector.
India achieved ethanol blending of 19.93% in July 2025, moving closer to the government’s E20 target. The report estimates ethanol production in India could reach 12 billion litres during the Ethanol Supply Year 2025-26.
The ethanol industry alone is expected to consume between 20 million and 25 million MT of maize by 2030-31. The report says policy measures such as administered ethanol pricing, GST reduction and interest subvention schemes for grain-based distilleries are accelerating investments in maize-based ethanol production.
Poultry Feed Industry Largest Consumer
Apart from biofuel, the poultry and livestock sectors remain the largest consumers of maize in India. The report estimates that animal feed accounts for around 54% of India’s total maize consumption, including 44% for poultry feed and 10% for livestock feed.
Maize constitutes nearly 60-65% of poultry feed formulations due to its high energy value and nutritional suitability. The report notes that rapid growth in poultry, dairy and aquaculture sectors is likely to sustain strong maize demand over the coming years.
The starch industry is another major demand centre, consuming nearly 7 million MT annually. Demand is rising from sectors such as food processing, pharmaceuticals, paper, textiles, adhesives and biodegradable plastics. Processed food segments including breakfast cereals, popcorn, extruded snacks and ready-to-eat products are also boosting maize consumption.
India’s Productivity Still Below Global Levels
Despite rapid growth, the report warns that India continues to lag behind major maize-producing nations in productivity. National average productivity reached 3.7 MT per hectare in 2025-26, compared with the global average of 6.04 MT per hectare.
Only a few states such as West Bengal, Andhra Pradesh, Tamil Nadu, Bihar and Telangana have yields close to or above global benchmarks. Andhra Pradesh and West Bengal recorded productivity levels of 6.8 MT and 6.9 MT per hectare respectively.
The report attributes low productivity in several states to dependence on rainfed cultivation, low mechanisation, weak pest management and limited adoption of advanced hybrid seeds.
Global Maize Market Expanding
Globally, the United States remains the largest maize producer with output of 385.33 million MT in 2025, followed by China, Brazil, Argentina and India. Together, these five countries account for nearly 71% of global production.
Global maize consumption is projected to reach 1.4 billion MT by 2034, driven mainly by rising animal feed demand. Feed alone is expected to account for more than 50% of total global maize usage.
International trade remains concentrated among a few countries, with the US, Brazil and Argentina dominating exports. Global maize exports were valued at USD 46.44 billion in 2025.
The report notes that geopolitical tensions, including disruptions around the Strait of Hormuz, have indirectly supported maize demand by lifting energy prices and improving ethanol economics globally.
Supply Chain Bottlenecks Threaten Growth
The report identifies several structural bottlenecks that could constrain India’s maize expansion. A large share of maize cultivation remains rainfed and vulnerable to climate shocks. Post-harvest systems also remain weak, with inadequate drying infrastructure, storage gaps and high moisture-related spoilage.
Aflatoxin contamination has emerged as a major concern affecting grain quality, farmer incomes and export competitiveness. The report also highlights fragmented supply chains, inconsistent quality standards and inadequate aggregation systems as major industry concerns.
India’s maize exports have also become volatile due to strong domestic demand and rising prices. In 2025, India exported 4.41 lakh MT of maize worth USD 170.3 million, while imports stood at 2.60 lakh MT worth USD 78.5 million.
Roadmap for a ‘New Maize Revolution’
The report recommends five major pathways to strengthen the maize ecosystem. These include improving farm productivity through hybrid seeds and mechanisation, expanding scientific drying and storage systems, strengthening aflatoxin management and quality testing, stabilising industrial raw material supply and aligning food-feed-fuel policies.
The study concludes that India stands at the cusp of a “new maize revolution”, but long-term success will depend on coordinated public-private investment, scientific innovation and stronger market linkages that balance farmer welfare, industrial demand and energy security.