India's maize imports rise as ethanol production policy backfires

Why in news

India has transitioned from a maize exporter to a net importer due to the ethanol blending policy aimed at reducing crude oil imports.

Background

Maize now supplies nearly 50% of India's ethanol production. The government purchases maize-based ethanol at ₹71.86 per litre, a price exceeding the cost of crude oil.

Facts for Prelims

• FactMaize accounts for nearly half of India's ethanol production.
• FactGovernment procurement price for maize-based ethanol is ₹71.86 per litre.
• FactIndia has become a net importer of maize for the first time in decades.

For Mains

Q. Analyze the economic and agricultural implications of India's ethanol blending policy on domestic food security and trade balances.

Dimensions to cover in your answer

• Impact on food inflation
• Trade balance shift
• Energy security vs. Food security
• Sustainability of ethanol feedstock

Keywords: Ethanol Blending Programme · Net Importer · Food Security · Trade Deficit · Feedstock Dynamics

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