Economy

Farmers demand Maize Control Order like sugar sector to force ethanol producers pay MSP

By issuing a control order for maize as an essential commodity, the MSP can be ensured at least for the farmers who sell their produce to the distilleries and it will automatically push the market rates as seen in case of wheat in 2025 procurement season

By issuing a control order for maize as an essential commodity, the MSP can be ensured at least for the farmers who sell their produce to the distilleries and it will automatically push the market rates as seen in case of wheat in 2025 procurement season
| Photo Credit:
ANI

Farmer leader Rampal Jat on Sunday demanded that the government should introduce a Maize Control Order to force ethanol distilleries buy the maize from farmers at the minimum support price (MSP).

He alleged that at the average mandi price of ₹1,821 per quintal, the ethanol price should be ₹54 per litre whereas the government has fixed the purchase price at ₹71.86 per litre based on MSP.

Addressing media in New Delhi, Jat, president of Kisan Mahapanchayat, said that when the government after coming to power in 2014 announced to increase the ethanol blending with petrol, it was also said that it would enrich the farmers by transforming them into energy providers whereas consumers would be able to buy petrol at ₹55 per litre.

“While farmers remain seeking at least the MSP for their maize after 10 years, the distilleries have definitely benefitted from the scheme,” Jat said. He also said that while the target to achieve 20 per cent blending was originally set for 2030, it was achieved in 2025, well ahead of the deadline. “Why such a target to ensure MSP for farmers could not be fixed and achieved,” Jat asked.

Alleging baiseness in the government policy in the treatment meted out to the primary producers (maize farmers) and the converting industries (distilleries), he said that when the government is buying the produce (ethanol) through the oil marketing companies (OMCs) at a guaranteed price, it should also determine the raw material price too.

The farmer leader said that the average price for maize in Nasrullaganj mandi of Madhya Pradesh, the second largest maize producing State, was ₹1,121/quintal and in Nahargarh market in Rajasthan, which accounts for 6 per cent of country’s total production, it was ₹1,510 per quintal.

“Most farmers sell their produce outside the agriculture market yards (mandis) and in their villages, where prices are even lower than ₹1,100 per quintal,” he said adding farmers are forced to sell their maize at half of the declared MSP of ₹2,400/quintal.

In 2014-15, the area under maize was 91.9 lakh hectares and production was 241.7 lakh tonnes, which increased to 120.17 lakh hectares and 422.81 lakh tonnes in 2024-25, he highlighted and credited the government for its announcement on ethanol.

Current drop

He also pointed out that the current drop in maize prices was due to the government’s reported move to allow import from the US through a bilateral agreement, currently under discussion.

“For maize growers, the government has not provided any mechanism to ensure the declared MSP is paid. Whereas in case of sugar, which is covered under the Essential Commodities Act, mills are mandated by law to buy sugarcane at fair and remunerative price declared by the government every year,” he said.

By issuing a control order for maize as an essential commodity, the MSP can be ensured at least for the farmers who sell their produce to the distilleries and it will automatically push the market rates as seen in case of wheat in 2025 procurement season.

Published on November 16, 2025

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