India faces corn supply squeeze due to weak monsoon and rising ethanol demand
India faces corn supply squeeze due to weak monsoon and rising ethanol demand
IN · Published Nov 12, 2026
• India's corn market is experiencing significant tightness, with prices surging by approximately one-third in a month.
• This is attributed to a 13% deficit in the 2026 southwest monsoon, which has reduced soil moisture and impacted maize yields during the kharif season.

Impact & Risks

The surge in corn prices is significantly impacting poultry and livestock feed manufacturers, as corn constitutes a major portion of their production costs. The price increase is eroding profit margins and forcing these industries to explore alternative feed options like millet, sorghum, and broken rice. However, these substitutes cannot fully replicate corn's nutritional value, potentially affecting animal performance. The ongoing dryness and reduced yields may exacerbate the supply shortage, leading to further price hikes and economic strain on dependent industries.

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