Boosting Maize and Dynamic Pricing: India's Path to Ethanol Success

A report highlights the need for increased maize production and dynamic grain ethanol pricing to enhance India's fuel blending potential. It calls for innovative policies and incentives to support farmers and develop domestic markets for by-products, amidst rising maize costs and static ethanol procurement prices.

A new report calls for strategic measures to harness the full potential of grain ethanol blending in India. These recommendations include boosting maize production and implementing dynamic pricing for ethanol to counter rising costs.

The report, titled 'Unlocking Rs 35,000 crore for farmers – The Untapped Potential of Grain Ethanol,' suggests incentivizing farmers to embrace maize cultivation through access to high-yield seeds and better agricultural infrastructure. It highlights the impact of static procurement prices that have dissuaded investments in the industry.

Additionally, the report advocates for policies related to the use of surplus and damaged rice from the Food Corporation of India as a supplementary feedstock. It further proposes strengthening domestic markets for Distiller's Dried Grains with Solubles (DDGS), a by-product of ethanol, through subsidies or import tariffs, with an aim to achieve significant emission reductions by 2030.

(With inputs from agencies.)