Diversion of maize for ethanol (biofuel) has turned India from a surplus producer and exporter to an importer of the feed grain.

What is Ethanol?

• Ethanol is a clear, flammable liquid with the chemical formula C₂H₅OH.
• It is a type of alcohol that occurs naturally when yeast ferments sugars.
• Ethanol can also be made in factories using industrial methods.
• It has a strong alcoholic smell and easily catches fire.

Major Ethanol Blends Used Worldwide

Ethanol blends are categorized based on the percentage of ethanol mixed with petrol. Some common blends include:

• E10: 10% ethanol, 90% petrol (widely used in many countries)
• E20: 20% ethanol, 80% petrol (India aims to adopt this blend)
• E85: 85% ethanol, 15% petrol (used in flexible-fuel vehicles)

Food Security: The Risks of Diverting Maize towards Ethanol

• Shortage of Maize: Maize diversion towards ethanol can upset the supply-demand balance of maize, which will reduce its availability for animals. 
  • It will also cause a hike in prices. For example:  prices rose from Rs 14,000–15,000 to Rs 24,000–25,000 per tonne over the last four years.
• Livestock feed cost: Maize is a primary ingredient for poultry and cattle. Higher price of maize will lead to high feed cost, causing further high prices of meat, dairy, and egg. 
• Threat to food security: There is no doubt that ethanol production supports renewable fuel goals, but  large diversion  of maize can threaten food accessibility for animals. 

Maize Imports and Policy 

• Current Import Policy:
  • India currently allows up to 0.5 mt of maize import annually at a 15% duty; quantities above that incur a 50% duty.
  • Imports of genetically modified (GM) maize are not permitted.
• Potential Benefits and Concerns:
  • Allowing duty-free imports of GM maize could help reduce soaring feed costs for poultry and dairy producers.
  • However, such changes may affect the interests of domestic maize and soyabean farmers.