The India Maize Summit 2015 discussed the challenges and growth potential of the starch industry, which consumes 15% of the annual maize output with increasing demand. Key issues identified include poor quality maize availability, high transportation costs, and competition with other industries, while solutions involve improving seed selection, post-harvest management, and optimizing freight costs. The industry is highlighted as a vital enabler for food processing and protein supply, emphasizing the need to address these challenges for stability in product prices and farmer growth.

1. India Maize Summit 2015
Session Theme
1

2. Starch Industry – Raw material
challenges & Substitues
• Starch Industry - Consumes 15% of annual Maize
Output.
• Requirement increasing at a rate higher than the GDP.
Current usage 2.5 MMT and could double by 2020 –
growth +16%
• Availability of good quality Maize an issue
• Post Harvest Management challenges
• Grain Enabling Infrastructure missing
• Competition from major user industries of Maize.
• Transportation Cost very high
2

3. Starch Industry - Challenges
• Substituion is low but broken rice based plants
are coming up and not operating in similar
scale as Maize based plants.
• Wheat and rice maybe viable alternates in
case product mix includes alcohol but need to
debate on food vs fuel.
3

4. Significance of the Industry
• Starch Industry maybe small in terms of overall
market size but is an enabler for important
industries like Food Processing, Animal Feed,
Textile, Paper & Packaging, Pharma etc.
• The contribution of the industry in being a
protein enabler for the population is tremendous.
• Provides an opportunity to consume most
standards of Maize* resulting in farm efficiency.
4

5. Challenges faced by the industry
• The industry manufactures products which are
as price sensitive as commodities
• Prices of starch based sweeteners linked to
sugar which is controlled
• Government policies need to enable industry
products which are safe for use in dairy and
processed food.
• Higher cost of capital requires interest
subvention to make it world class
5

6. Why these challenges needs to be
addressed
• Starch Industry is a value multiplier for the farm
sector, its growth ensures that the farmers grow
as well.
• It is also a major contributor to being a protein
enabler for the population and hence is very
essential.
• If we manage the issues, it is possible that the
prices of essential products would be stable over
the medium term and hence help keep overall
prices in consuming sectors low and inflation in
check.
6

7. Possible Solutions to address these
challenges
• From Seed Selection to Post Harvest
Management
• Market Yard or regulating mechanism to
encourage good quality maize sold to
consumers
• GST implementation for the industry
• Freight to be optimised.
• Lower cost of capital for Food Processors
7

8. Thank You
8