Corn prices in India rise by a third amid shortages and growing bioethanol demand

Corn prices in India have risen by approximately one-third over the past month amid lower crop production, adverse weather conditions and increasing demand from bioethanol producers. According to the Compound Livestock Feed Manufacturers Association of India (CLFMA), corn was trading at 31,000–36,000 rupees/ton ($330–383/ton) in early November 2026, compared with 23,000–27,000 rupees/ton ($245–287/ton) a month earlier. The sharp increase in grain prices is putting significant pressure on the feed industry and poultry sector, where feed costs, primarily corn and soybeans, account for 60–70% of total production costs.

One of the main reasons for the shortage has been deteriorating weather conditions during the monsoon season. Rainfall in India was approximately 13% below normal, negatively affecting the kharif corn crop, which accounts for the majority of annual production. According to CLFMA estimates, corn production could reach around 23.5 mln tons, compared with 25 mln tons last year, representing a decline of 1.5 mln tons, or 6%. Meanwhile, drought conditions are threatening the winter rabi corn crop, with preliminary estimates suggesting a potential production shortfall of 16.7%.

Additional pressure on the domestic market is coming from rapidly growing corn consumption in the bioethanol industry. According to India’s Ministry of Petroleum and Natural Gas, corn’s share of ethanol feedstocks increased from virtually zero in 2021/22 to around 37% in 2025/26. The government’s ethanol blending program is encouraging the use of grain for fuel production, intensifying competition for corn between the energy sector and feed manufacturers. Against the backdrop of lower crop output, this trend is further restricting the availability of feed ingredients.

Indian feed manufacturers are already exploring options to partially replace corn with other ingredients, including millet, sorghum, broken rice, substandard wheat and DDGS (dried distillers grains with solubles), a by-product of ethanol production. However, completely replacing corn in feed rations is currently impossible. Poultry producers are particularly affected by rising raw material costs, facing declining profitability and limited opportunities to pass additional expenses on to consumers.

Amid the worsening situation, CLFMA is urging the Indian government to consider measures to stabilize the feed market. Possible solutions include temporarily easing corn and soybean imports, restricting exports of scarce raw materials and introducing price support mechanisms for the poultry industry. According to the association, without additional measures, growing demand from the bioethanol sector and the risk of further crop losses could keep feed prices under significant pressure in the coming months.

Tags: corn, India, biofuel, bioethanol