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Informist, Friday, Dec. 19, 2025

 

By Pallavi Singhal

 

NEW DELHI – The National Commodity and Derivatives Exchange Ltd. is exploring the introduction of maize futures contracts, as rising demand for the grain to produce ethanol is changing market dynamics of the crop, Managing Director and Chief Executive Officer Arun Raste said.

 

"Our consideration now is on maize because, thanks to all the things which are happening in terms of ethanol and others, there will be some industrial demand for maize," Raste told Informist in a telephonic conversation. "Maize is available throughout the country, and there will be more commercial use and processing."

 

Maize has gained prominence in recent years as the government has been pushing for higher ethanol blending in petrol, prompting distilleries to increasingly use maize as a feedstock, especially during periods when rice is diverted away from ethanol. State-owned oil marketing companies blended 896 million litres under the Ethanol Blending Programme, achieving 20% blending in November, according to the Petroleum Planning and Analysis Cell.

The government has targeted cumulative 20% ethanol blending with petrol by the end of October 2026. The government is yet to decide on raising the target for the subsequent period.

 

Maize is also a key input for poultry feed, starch, sweeteners, and other industrial products, making it one of the more diversified agri-commodities in terms of end-use demand. Accordingly, maize production in India has risen notably in recent years — from about 33.7 million tonnes in 2021–22 to an estimated 42.3 million tonnes in 2024–25, according to government estimates.

 

Raste said the widening demand base could create a need for price risk management tools. "There could be some demand for the futures and derivatives for maize," he said, indicating that NCDEX is assessing whether the crop has the necessary depth and participation to support a derivatives contract.

 

Maize production is geographically widespread, with major producers being Karnataka, Maharashtra, Madhya Pradesh, Bihar, and Telangana. NCDEX officials said this nationwide availability could help support delivery-based trading.

 

The exchange is evaluating launch of maize futures alongside other agri-commodities as part of its efforts to strengthen volumes and diversify its product portfolio. NCDEX has said it is reviewing both new contracts and the possible relaunch of commodities that were traded earlier, depending on regulatory approvals and market readiness.

 

Raste said the exchange hopes to gain traction in maize as industrial consumption expands. Any decision to launch maize futures would be taken after assessing participation across the value chain, including farmers, traders and processors, he said.  End

 

 

Edited by Tanima Banerjee

 

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