Assam Government Promotes Maize Cultivation Amid Rising Ethanol Demand

Dispur, India Jul 29, 2026 ALN: The Assam government, on Wednesday, urged farmers to diversify towards maize cultivation, citing rising demand from the ethanol industry and higher income potential, while assuring continued support through Minimum Support Price (MSP) incentives.

The issue was raised during the 14th day of the Budget Session of the Assam Legislative Assembly by Congress MLA from Mankachar, Mohibur Rahman, who said farmers are not receiving the MSP announced by the Centre due to inadequate procurement facilities. This concern reflects a broader issue faced by farmers across India, where the gap between the announced MSP and the actual prices received by farmers has been a long-standing challenge.

Rahman pointed out that although the Centre had fixed the MSP for maize at Rs 2,410 per quintal last year, farmers in his constituency are forced to sell their produce for around Rs 1,500 per quintal. This discrepancy raises questions about the effectiveness of the MSP system, which is intended to protect farmers from price fluctuations and ensure a fair return on their investments. The lack of adequate procurement facilities often leads to farmers being at the mercy of market prices, which can be significantly lower than the MSP.

"Maize cultivation in our area is increasing every year, but farmers are unable to realise the MSP because procurement facilities are inadequate. The government should ensure that proper mechanisms are in place before the next marketing season in February-March so that farmers actually receive the MSP," he said. This statement underscores the need for systemic changes in procurement processes to ensure that farmers can benefit from the MSP that is designed to support them.

Rahman also highlighted a similar issue with mustard cultivation, stating that while the MSP for mustard stood at Rs 6,200 per quintal, local farmers were receiving only Rs 4,800-5,000. This further illustrates the challenges faced by farmers in securing fair prices for their crops, which can impact their livelihoods and economic stability.

In response to these concerns, Agriculture Minister Pijush Hazarika acknowledged the issues raised and stated that the Assam government is supplementing the Centre's MSP through additional incentives. He emphasized that the state is encouraging maize cultivation due to its growing market demand. This reflects a strategic shift in agricultural policy aimed at not only addressing local needs but also aligning with national priorities such as energy independence and sustainability.

"The Centre has fixed the MSP for mustard at Rs 6,200 per quintal, and the Assam government is providing a top-up incentive of Rs 300, taking the effective support price to Rs 6,500. For maize, the Centre's MSP is around Rs 2,400, while the State government provides an additional Rs 250 per quintal," Hazarika told the House. This commitment to increasing the effective MSP for both maize and mustard is crucial for incentivizing farmers to grow these crops, especially in regions where traditional crops may not be as profitable.

Highlighting the potential of maize cultivation in lower Assam, the minister noted that South Salmara and Mankachar had together produced over 5,300 metric tonnes of maize last year. This production level indicates a growing interest and capability among farmers to cultivate maize, which is a versatile crop with multiple uses, including food, feed, and industrial applications.

"The ethanol industry has created a significant market for maize. There is unnecessary criticism of ethanol production, but it is opening up new opportunities for our farmers. India imports large quantities of fuel, and producing ethanol domestically will help reduce those imports while creating additional income for cultivators," he said. The government's push for ethanol production aligns with India's broader goals of enhancing energy security and reducing reliance on fossil fuel imports, which can be economically and environmentally beneficial.

Hazarika noted that maize prices had improved considerably in recent years due to rising demand and claimed that farmers could earn around Rs 35,000 from cultivating maize on one bigha of land. This potential profitability is a strong incentive for farmers to consider shifting some of their acreage from traditional crops to maize, especially in light of changing market dynamics.

"Farmers should continue paddy cultivation, but they should also increasingly adopt maize cultivation because it offers better returns and a growing market," he added. This statement reflects a dual approach to agricultural production, where farmers are encouraged to diversify their crop portfolios to mitigate risks associated with market volatility and climate change.

The promotion of maize cultivation in Assam is not just an economic strategy but also has implications for food security, rural employment, and sustainable agricultural practices. As the demand for ethanol grows, driven by both domestic policies and global trends towards renewable energy, maize could play a pivotal role in transforming the agricultural landscape of Assam and India as a whole.

Furthermore, the focus on maize cultivation could lead to increased investment in agricultural infrastructure, including storage facilities and processing units, which are essential for enhancing the value chain of maize and ensuring that farmers receive fair prices for their produce. The government’s role in facilitating these developments will be crucial in ensuring that the benefits of increased maize production are realized by the farmers and the local economy.

In conclusion, the Assam government's initiative to promote maize cultivation amid rising ethanol demand represents a significant shift in agricultural policy aimed at enhancing farmer incomes and reducing dependency on fuel imports. However, the success of this initiative will depend on addressing the existing challenges related to procurement, market access, and infrastructure development to ensure that farmers can fully benefit from the opportunities presented by this growing sector.