India's Livestock Feed Sector Seeks Maize Supply Protection Amid Rising Ethanol Demand

Livestock feed manufacturers in India are calling on the government to prioritize their sector's maize supply needs amid concerns over rising ethanol demand. The industry relies heavily on maize, but production is expected to decline due to lower acreage and El Niño-related weather issues.

The CLFMA of India has urged the government to allocate available maize supplies to the feed sector first, as ethanol producers have alternative feedstocks like rice and other grains. 'The government has to balance and first take care of this sector, because we have no alternatives to maize,' said Divya Kumar Gulati, chairman of the CLFMA of India.

The maize acreage in major producing states like Karnataka, Maharashtra, and Madhya Pradesh has declined significantly, with some areas experiencing a 21% reduction. The feed industry is conducting a satellite imagery-based survey to assess the maize crop, which indicates a possible shortfall of 11-12%. 'If you give away 9-10 million tonnes, we had it,' Gulati said.

The poultry sector is particularly exposed to higher maize prices, as both broiler and layer feed formulations are heavily dependent on maize. Feed accounts for around 60-70% of poultry production costs, meaning higher maize prices can directly affect the cost of eggs and chicken meat.