In India, Reuters reports India’s drive to boost ethanol production from corn turned the country into a net corn importer for the first time in decades, pushing domestic prices to record highs and impacting global supply chains. The policy shift, which began with a January hike in procurement prices for corn-based ethanol, aims to reduce India’s reliance on sugarcane for biofuel while curbing carbon emissions by blending ethanol into gasoline.
As a result, India is set to import 1 million tonnes of corn this year, mainly from Myanmar and Ukraine, while exports plummet to 450,000 tonnes. This has strained local poultry producers, who rely on corn for feed, and prompted calls to remove import duties and lift bans on genetically modified corn. Ethanol distilleries’ demand for corn has quadrupled as the government targets a 20% ethanol blend by 2026, pushing local prices far above global benchmarks.
The surge in demand has rippled across global markets, lifting corn prices in major export countries and forcing traditional Indian buyers like Vietnam and Bangladesh to seek alternative sources. With the ethanol push showing no signs of slowing, India’s role as a permanent corn importer seems likely to continue.
Tags: corn, ethanol, India
Category: Fuels
