Maize prices surge 20% in India as government promotes ethanol production
Maize prices increased by 20% in the first two weeks of January compared to October as demand picked up after the government’s plans to procure the commodity for ethanol production due to restrictions on the use of sugar for producing biofuel.
As per trade estimates, maize prices increased to Rs 2,366 per quintal in Gulabbagh in Bihar and feed-grade maize prices increased to Rs 2,400 per quintal in Ahmedabad in Gujarat.
“The prices will stay firm in the coming months because the demand is going to go up significantly,” said Gopal Sharma, a maize trader from Begusarai in Bihar adding that there even could be shortage of the commodity going forward.
India is promoting the use of maize as an alternative to sugar to boost ethanol production and ensure sufficient supply of the sweetener in the market.
