In the quiet town of Ghazipur, along the banks of the Ganges, poultry farmer Satyadev Prajapati is facing a tough choice: feed his 350 hens lower-quality grain, or absorb yet another hit to his already-thin profit margins. The reason? A steep 40% rise in poultry feed prices, driven by skyrocketing maize costs.
At the heart of the issue is India’s aggressive biofuel programme. As the government pushes for 20% ethanol blending in petrol by 2025, maize—a key ingredient in both poultry feed and ethanol—is caught in the crossfire.
Maize-based ethanol production has surged from 1 million metric tonnes in 2022 to over 6 million in 2024, with projections hitting 11 million by next year. This means ethanol plants now consume nearly a third of India’s maize, pushing prices higher and forcing small poultry farmers to make difficult trade-offs.
“The egg price stays the same, but feed cost keeps rising,” said Prajapati. “It’s not sustainable for us.”
India’s poultry sector uses about 60% of the country’s maize. With egg prices dictated by market demand, small farmers can’t simply pass on the extra cost. Feed suppliers and chick sellers are also feeling the pinch, with shrinking margins and no safety net.
To cope, many farmers are calling for increased maize cultivation and tighter controls on how much of it goes to fuel. Experts argue that the future may lie in second-generation ethanol, made from non-food sources like crop residue, which could ease pressure on food supply chains.
Until then, small-scale poultry farmers—already battling disease, heatwaves, and limited credit—are bracing for more turbulence.