Fuel, Forex and Farmers: Why India Is Betting Big on Maize
Maize, a grain that was mainly used to feed poultry and cattle, is now one of India's main raw materials for ethanol, the plant-based fuel mixed into petrol. It may soon also feed sustainable aviation fuel (SAF) for aircraft.
In the current Ethanol Supply Year (November 2025 to October 2026), grain-based ethanol supplied about two-thirds of India's ethanol, and maize became the single largest feedstock (raw material). Researchers estimate that about a quarter of India's maize now goes to ethanol.
Because every litre of ethanol replaces some imported crude oil, maize also helps India save foreign exchange (forex), the dollars India spends on imports.
India harvested a record 55.09 million tonnes (Mt) of maize in 2025-26 (Third Advance Estimates), up from about 43.4 Mt in 2024-25.
Planners aim to add roughly 15 Mt more by 2030 and keep raising output towards 100 Mt by 2047. The open question is whether farms can grow enough to meet demand from feed, fuel and industry together without pushing up food and feed prices.
Maize Cultivation in India: Crop, Regions and Uses
Maize (also called corn; scientific name Zea mays) is a cereal grain, like rice and wheat. In India it is the third most important cereal after rice and wheat. It is used as food for people, as feed for poultry and cattle, and as a raw material for industry, especially for starch and, more and more, for ethanol fuel. Because it gives high yields and has so many uses, maize is often called the "queen of cereals".
Maize has moved from being mainly a feed crop to being a fuel crop as well, and India's record 55 Mt harvest in 2025-26 reflects this new demand. The plan to add about 15 Mt by 2030 and approach 100 Mt by 2047 depends on raising yields, which are still far below world leaders. If output does not keep pace, feed, food and fuel buyers will compete for the same grain.
Ethanol Blended Petrol (EBP) Programme
The Ethanol Blended Petrol (EBP) Programme is the Government of India's plan to mix ethanol, a fuel made from plants, into the petrol sold at petrol pumps. "E20" means petrol with 20% ethanol and 80% petrol. Public sector oil marketing companies (OMCs) buy ethanol from distilleries at prices fixed by the government and blend it into petrol. The programme aims to cut crude oil imports, reduce pollution and give farmers an extra market for their crops.
The EBP Programme is the main reason maize demand has jumped. With sugar-based feedstocks stopped for ESY 2026-27, grains, and maize above all, must supply most of the ethanol needed to keep blending at 20%. Each litre blended replaces imported petrol, which is the "forex" saving the news refers to.
Sustainable Aviation Fuel (SAF): Science and Significance
Sustainable Aviation Fuel, or SAF, is jet fuel made from renewable or waste materials instead of crude oil. It can be made from used cooking oil, animal fat, crop waste, or alcohols such as ethanol. SAF is a "drop-in" fuel: it meets the same quality rules as normal jet fuel (ATF), so it can be mixed with it and used in today's aircraft and airports without changes. Over its full life cycle (from growing or collecting the raw material to burning it), SAF can cut carbon emissions sharply compared with fossil jet fuel.
The phrase "soon, planes" in the news points to SAF. If India's SAF targets from 2027 are met partly through the alcohol-to-jet route, maize ethanol would gain a second fuel market on top of petrol blending, adding further to the demand that farms must meet.
- Maize production 2025-26: record 55.09 million tonnes (Third Advance Estimates), against about 43.41 Mt in 2024-25
- Targets: add roughly 15 Mt by 2030; move towards 100 Mt by 2047
- ESY 2025-26: grain-based ethanol about two-thirds of supply; maize the single largest feedstock; about a quarter of India's maize goes to ethanol
- Kharif 2026-27 maize MSP: ₹2,410 per quintal (up ₹10)
- Maize incentive for ethanol: ₹2.79 per litre for ESY 2026-27 (price ₹68.86 per litre)
- SAF indicative targets: 1% (2027), 2% (2028) for international flights; 5% by 2030 announced
- Maize import TRQ: 5 lakh tonnes at 15% duty