Bihar Seeks Investment in Maize Sector Amid Ethanol Boom

New Delhi, Sep 25 (PTI) Bihar Agriculture Minister Mangal Pandey on Wednesday called for private sector investment in hybrid maize seed production and warehouse facilities amid increased local production.

Addressing a FICCI-organised maize summit, Pandey announced Bihar's ambitious target to cultivate maize on a record 10 lakh hectares this year.

As India's fifth-largest maize producer, the state is witnessing a shift in farmer preferences towards maize cultivation due to attractive market prices surpassing the minimum support price (MSP).

"Maize is no longer just for human and animal consumption. It's now powering our vehicles through ethanol-blended petrol," Pandey said, highlighting the crop's expanding utility.

The Centre's decision to allow maize as a feedstock for ethanol production has led to a multi-fold increase in demand, spurring the establishment of ethanol plants across the state.

However, this agricultural boom has exposed two critical challenges: a shortage of hybrid maize seeds and insufficient storage infrastructure.

"We're facing a huge requirement for hybrid maize seeds. I invite the private industry to invest in local seed production," Pandey said, adding that a new policy is being framed with an expression of interest to be issued soon.

The minister also emphasized the need for enhanced warehouse facilities, despite improvements in transportation infrastructure. He touted Bihar's investor-friendly agricultural policies, urging investors to capitalize on the state's potential.

Union Agriculture Secretary Devesh Chaturvedi echoed the need for increased hybrid maize seed production, noting that southern states like Telangana and Andhra Pradesh currently dominate this sector. He called for research to explore seed production possibilities in northern states.

Bihar Agriculture Secretary Sanjay Kumar Agarwal revealed that 99 per cent of the state's hybrid maize seeds are currently sourced from other states. He invited industry players to expand their seed production operations in Bihar.

The state's ethanol production capacity is set to reach 8.09 lakh kilo litres annually by year-end, with 15 plants expected to be operational. This expansion will require about 23.38 lakh tonnes of maize per annum, further boosting demand for the crop.

As Bihar aims to increase agriculture's 14 per cent contribution to the state GDP, officials announced that the Centre has agreed to establish an Agricultural and Processed Food Products Export Development Authority (APEDA) office in Bihar by December to promote maize exports.