Biofuel Push Fuels Kitchen Heat: Wheat Prices Rise as Maize Diverted to Ethanol
India’s big push for biofuel production is now showing its effect in the food market. Prices of both wheat and maize are rising, creating pressure on household budgets.
The main reason: a large share of maize (corn) is being diverted to ethanol blending, leaving less supply for food and animal feed. This supply shortage is upsetting the balance and increasing costs.
Impact on Wheat Prices
As maize becomes less available, wheat is being used as a replacement in feed and food products.
This added demand is driving wheat prices higher, making food items costlier for consumers.
Biofuel vs. Food Security
India’s ethanol blending plan is designed to cut crude oil imports and boost green energy adoption.
But experts warn: using food grains for fuel could push inflation up and create food shortages if not managed carefully.
What’s Next?
Policymakers need to balance clean energy growth with stable food prices.
Analysts suggest focusing more on second-generation (2G) biofuels and non-food feedstock like agri-waste, crop residue, and biomass. This can reduce pressure on food crops while still supporting India’s biofuel mission.
