To achieve the 20 percent ethanol blending target by 2025, it is essential for half of the ethanol production to come from grain-based plants. However, due to the current limitations in availability of single cross hybrid variety, increasing the area appears to be the most viable solution, said Gyanendra Shukla, head of the committee on corn at the Federation of Seed Industry of India (FSII). Also, only a comprehensive policy on corn may help increase productivity in medium to long term, he added.
One tonne per hectare increase in yield means a lot because corn is grown in over 10 million hectares. If the current average yield of 3 tons per hectare is raised to 4 tons/hectare, the production can touch 45 million tonnes (mt) against the current production of 35 mt, said Shukla.
“Technically, it is possible. But, it can be achieved in two years is a bit of a stretch,” Shukla said.
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Highlighting that the area under corn grew from 6 million hectares (mh) to 10 mh in the last 10-15 years due to better prices, he said that similar to rice and wheat, corn needs to be procured when there is a sudden glut.
“This is one crop where there is no price support. If there is a price support in the form of MSP, farmers will quickly switch to corn,” said Shukla, who is also the CEO of JK Agri Genetics.
Union Agriculture Secretary Manoj Ahuja last month had said that corn production needs to be raised to 44-45 mt in next five years from current 33-34 mt to meet the rising demand for ethanol and the poultry industry.
According to second advance estimates, maize production in 2022-23 crop year (July-June) is projected at 34.61 mt, up from 33.73 mt in the previous year.
The grain requirement for 20 per cent ethanol blending requirement has been pegged at 16.5 mt per year.
Producing 10 mt extra corn does not require a lot of area, Shukla said adding that the only thing required is “what are we willing to give away and how are we going to support when farmers are going to produce this crop.”
As far as the seed industry is concerned, it can quickly ramp up the production and meet the demand since it always plans one season ahead.
“Seed is something companies have to invest in a lot. So, there’s a need for very well articulated comprehensive plan from the government to provide price support and develop infrastructure,” he said.
Earlier this month, Food Secretary Sanjeev Chopra had said that there is a limit to increasing sugarcane output and half of the ethanol requirement has to come from grain-based plants. He further said that sugar has its limitations, and the grain-based plants, which are tapping subsidised rice offered by Food Corporation of India (FCI), is not a sustainable feedstock for ethanol. So, the focus has now shifted to corn.
Currently, India has capacity to produce 1,082 crore litres of ethanol (including plants under construction). Out of this capacity, 723 crore litres come from molasses-based units and 359 crore litres come from grain-based plants.
While there is a need to produce about 1,016 crore litres of ethanol to meet the 20 per cent blending target, about 334 crore litres of ethanol would be required for other uses. For this, about 1,700 crore litres of ethanol producing capacity would be required considering plants operate at 80 per cent efficiency.