Page 30 - Think Grain Thin Feed Oct 2025

www.benisonmedia.com POLICY UPDATE Think Grain Think Feed - Volume 11 | Issue 12 | Oct 2025

Ethanol Policy and Its Impact

on Soybean Farmers

Authors: Siraj Hussain, former Union Agriculture Secretary & Garima Jain, Commodity Expert
feedstock and the rest from 2024–25, adding 5.15 million
food grains. However, by the tonnes of new protein feed
Ethanol Supply Year (ESY) to the market.
2024–25, this ratio is Soybean Market Under
expected to reverse. Of the
Pressure
10.77 billion litres of ethanol
Before the ethanol boom,
contracted by public sector
the main source of livestock
oil marketing companies
protein was de-oiled cakes
(OMCs), about 3.5 billion
(DOCs) from oilseeds like
litres (32%) will come from
soybean, mustard, and
sugarcane and 7.3 billion
groundnut. Soybean meal,
litres (68%) from food grains.
with 40–45% protein, was the
Corn Takes the Lead
preferred poultry and cattle
Corn alone will contribute
feed and a major export.
around 5 billion litres (46%)
Now, cheaper DDGS—priced
of ethanol, consuming 13.1
at INR 15,500–20,000 per
million tonnes of the nation's
tonne versus INR
42 million tonnes of corn
31,000–32,000 for soybean
production. Additionally, 1.2
The National Policy on meal—has displaced
billion litres will come from
Biofuels (NPB), announced soybean DOC.
rice supplied by the Food
by the Ministry of Petroleum Consequently, soybean
Corporation of India (FCI) at
and Natural Gas in June 2018 prices have dropped below
INR 22.50/kg, though its
and amended in June 2022, the MSP of INR 4,892 per
economic cost is INR
targeted 20% ethanol quintal, with market rates
4,173/quintal. The
blending with petrol (E20) by between INR 3,200–4,200 in
government has allocated
2030. Subsequently, in June 2023–25. The MSP for
5.2 million tonnes of rice for
2021, NITI Aayog released its 2025–26 is INR 5,328, yet
ethanol manufacture,
2020–25 roadmap for
entailing a subsidy of farmers expect less. The area
ethanol blending, prepared
roughly INR 10,000 crore. under soybean has declined
under Dr. Rakesh Sarwal, from 12.7 to 12 million ha,
Rise of DDGS: The By-
Additional Secretary, NITI while maize cultivation has
Product Changing Markets
Aayog. Few could have expanded from 7.9 to 9.5
A key by-product of ethanol
predicted that a small by- million ha due to higher
production from maize and
product of ethanol demand from distilleries.
rice is Distiller's Dried Grains
production would later Experts at Globoil India
disrupt agricultural markets with Solubles (DDGS)—a emphasized that
and severely impact soybean protein-rich feed ingredient.
farmers. DDGS from maize contains government policy should
28–30% protein, while that incentivize protein crops to
Sources of Ethanol: Grains
from rice has about 45%. reduce pulse imports and
Surpass Sugarcane
India is projected to produce ensure food security takes
NITI Aayog initially projected
3.9 million tonnes of maize precedence over mobility
that 54% of ethanol would
DDGS and 1.25 million security.
come from sugarcane-based
tonnes of rice DDGS in Source: Money Control
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