Maize Market Prices Fall Far Below MSP Despite Ethanol Push
Despite a ~12 % jump in maize cultivation (surpassing 9.5 million ha) driven by the government’s ethanol-blending push, farmers are collapsing under sharply low market prices. In Madhya Pradesh, maize is selling at model prices of ₹1,140–1,400/ quintal, while the government’s Minimum Support Price (MSP) is set at ₹2,400/ quintal for 2025-26 — a gap of over ₹1,000 per quintal.
State-wise market vs MSP (reported figures)
| State | Market price (reported) ₹/qtl | MSP ₹/qtl | Gap vs MSP (₹/qtl) | Notes |
|---|---|---|---|---|
| Madhya Pradesh | 1,140 – 1,400 | 2,400 | 1,000 – 1,260 | Very wide gap; moisture discounts reported large. |
| Rajasthan | 1,500 – 1,800 | 2,400 | 600 – 900 | Local demand weak; procurement not triggered. |
| Uttar Pradesh | 1,500 – 1,800 | 2,400 | 600 – 900 | Similar to Rajasthan; traders applying discounts. |
| National (typical) | 1,140 – 1,800 | 2,400 | 600 – 1,260 | Represents broad distress in principal maize belts. |
In Rajasthan and Uttar Pradesh, similarly low market rates of ₹1,500–1,800/ quintal are widely reported. Farmers are protesting, claiming no procurement has been triggered and that moisture discounts by traders shave off another ₹1,000–1,100/ quintal.
Industry Insight
This disconnect highlights a major structural issue: although the ethanol-blend mandate is designed to pull more maize into bio-fuel use, increased acreage plus competition from other feedstock (like rice) are suppressing effective demand and opening deep losses for producers. For India’s agricultural policy ecosystem, the key takeaway is that output expansion alone isn’t enough — procurement mechanisms, price-support architecture and alternative off-take channels must align more tightly to safeguard farmer incomes and prevent supply-chain collapse.
Source : DAirynews7x7 Oct 20th 2025 Rural Voice