India's biofuel initiative impacts chicken farmers' financial gains
The expansion of India's biofuel program, particularly the increased use of maize (corn) as a feedstock for ethanol production, is creating pressure on maize availability and prices, negatively impacting small-scale poultry farmers who rely on maize for feed.
India's push towards biofuels aligns with its broader goals, including energy security and supporting domestic agriculture. However, the diversion of maize for ethanol production reduces the supply of maize available for traditional uses such as poultry feed. This creates challenges for small-scale poultry producers who depend heavily on affordable maize feed.
The rise in ethanol production is impacting millions of small poultry farmers across the country. For instance, in the town of Ghazipur, located along the Ganges river in north India, free-range hens are experiencing a decrease in the number of eggs hatched due to a 40% increase in the price of their feed.
Similarly, maize price hikes have shrunk the margins of feed and chick suppliers like Prince Rajput in the neighboring district of Varanasi. The government's aim to have every litre of petrol sold across the country contain 20% ethanol fuel by the end of 2025 is exerting upward pressure on maize prices and reducing feed availability.
Experts suggest that new biofuel technologies, such as second-generation (2G) ethanol, could help India meet its blending targets without compromising food security or land-use change. 2G ethanol uses crop residues and non-food biomass, reducing the strain on food systems. The government could encourage the shift to 2G ethanol by limiting the land and water footprint of ethanol production and offering a clearer definition of "sustainable ethanol."
However, small farmers in Ghazipur, India, have limited ability to mitigate price shocks and may be forced out of business due to rising costs. The situation may force them to seek alternative feed sources or face increased operating costs, potentially threatening their livelihoods if support and adaptive strategies are not implemented alongside biofuel policy growth.
The story is related to topics such as Carbon & Climate, Energy, Food & Agriculture, Policy & Finance, and Transport, and regions like India. In the same decade, the biofuel program helped avoid 54.4 million metric tonnes of planet-heating carbon dioxide emissions. Between 2014 and 2024, India's biofuel program saved about 1.06 trillion rupees (US$12.37 billion) in crude oil import costs.
The government's push towards biofuels in India, as part of its Sustainable Development Goals (SDG), has led to increased carbon emissions due to the expansion of ethanol production from maize, which impacts the climate change agenda. The rise in maize prices, caused by the diversion of maize for ethanol production, poses financial challenges for small-scale poultry farmers and feed suppliers in the industry. The move towards second-generation (2G) ethanol, which uses non-food biomass, could offer a potential solution by reducing the strain on food systems and promoting sustainability in the energy sector.
