Introduction: Maize Processing Industry India
India’s Argo-processing industry is gradually shifting from the traditional model of selling raw agricultural produce to a phase where value-added manufacturing is in focus. This transition is being propelled by growth in demand from food, pharmaceutical, personal care and industrial sectors. Among various crops maize has acquired special significance by virtue of the ability to be converted to a wide range of specialty biochemical products.
Maize today is not restricted only to food grain use. It’s become a vital industrial raw material in the production of starches, sweeteners, excipients and for fermentation substrates. This shift is turning out to be very good opportunities for manufacturers, MSMEs, and investors all over India.
Read More: Maize (Corn) Products in India (Starch, Glucose, Dextrose, Sorbitol) Trends, Opportunities, Market Analysis and Forecasts (Upto 2030-31)
Strength of Maize Production in India and the Processing Gap
As per data released by ministry of agriculture & farmers welfare, India is producing over 36 million metric tonnes of maize per year and it is one of the leading producers of maize in the world. However, in spite of this huge production base, a very small portion of maize undergoes processing into specialty derivatives through wet milling and biochemical conversion.
Most of the maize output still goes for poultry feed industry or is sold in its raw form. As a result, India captures little value from its maize crop while downstream industries struggle with a shortage of high-quality derivatives.The domestic market has experienced a significant demand-supply imbalance because of this particular mismatch.
Industrial Uses of Maize Based Specialty Products
Maize-based specialty products are now widely used in the different industries because of their functionality.
Some of the important industrial applications are:
- Due to its binding and thickening properties, modified starch is used in textile sizing, paperboard manufacture, as an adhesive, and as a packaging item.
- Liquid glucose is a major component in confectionery, bakery fillings, beverages as well as ice creams.
- Dextrose monohydrate is used widely in pharmaceutical preparations, intravenous fluids and energy products.
- Sorbitol solution functions as a humectant and stabilizer in toothpaste and cosmetic creams and cough syrups and vitamin formulations.
- Maltodextrin exists in infant food products and sports nutrition items and nutraceutical goods.
These applications make maize derivatives essential inputs to consumer as well as industrial markets.(Maize Processing Industry)
Read More: Maize (Corn) Products in India (Starch, Glucose, Dextrose, Sorbitol) Trends, Opportunities, Market Analysis and Forecasts (Upto 2017)
Processed Food And Pharmaceutical Industry Propelling Market Growth
The consumption of processed food in India is growing rapidly with urbanization and lifestyle changes, and the rise in disposable income. According to the Ministry of Food Processing Industries, the processed food sector is expected to grow at a CAGR of more than 8% till 2030. Since starches and glucose syrups are essential ingredients on processed foods, also the demand for maize-based derivatives is expected to grow parallelly.
In addition, the pharmaceutical manufacturing in India is growing under the Production Linked Incentive (PLI) scheme of the Department of Pharmaceuticals. As the production of pharmaceuticals has been on the rise, there is also a growing demand for paints and coatings that contain excipients like glucose, dextrose and sorbitol, which has also boosted the outlook for maize processing units.
Import dependence & import substitution opportunity
Despite being a major producer of maize, India still imports refined specialty products such as pharmaceutical grade sorbitol and modified starch. This dependence exists mostly because the domestic refining capacity is still limited and unevenly distributed.
The consequence of this import dependence includes:
- Higher raw material procurement costs for pharma and FMCG companies
- Exposure to disruptions in the global supply chain
- Increased foreign exchange outflow
Establishment of maize processing units close to pharmaceutical and food processing clusters can ensure the reduction of imports while providing stable and cost-effective supply.(Maize Processing Industry)
Read More: Maize, Corn and its By Products, value added Products, Derivatives, Maize Processing Industry, Corn Starch, Dextrose, Liquid Glucose, Sorbitol, Oil, Gluten, Germ Oil, Wet Milling, Maize Starch Plant & related Products, High-Fructose Corn Syrup (HFCS)
Techno-Economic Feasibility of Maize Wet Milling Plants
Integrated maize wet milling plants are regarded as technically and economically feasible because they produce a number of products from one raw material. In the normal process, maize kernels are steeped in sulphur dioxide treated water, then ground and separated to get starch slurry.
This starch is then broken down into various products by means of enzymatic and chemical processes. One of the greatest benefits of maize processing plants is the ability to monetize by-products, which contributes enormously to improve profitability.
Key by-products include:
- Maize germ oil
- Gluten feed for animal nutrition
- Fiber residues
The project revenue increases through these by-products which also improve its internal rate of return.
Organized Industry Presence in India
India’s organized maize processing industry comprises of established players such as Gujarat Ambuja Exports Ltd., Sukhjit Starch & Chemicals Ltd., Riddhi Siddhi Gluco Biols Ltd. and Roquette India Pvt. Ltd. These companies make large volumes to FMCG and pharmaceutical manufacturers, but the concentration of their plants in small areas causes supply gaps in other areas.
This frees up space for the MSME-scale plants that are located nearer to demand centres.(Maize Processing Industry)
Read More: Maize Processing Business in India: Profitable Opportunities in Starch, Liquid Glucose & Sorbitol
Government Incentives In Support of Argo-Processing Units
The Government of India has good policy support for Argo-processing investments. Major schemes include:
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
- pm formalization of micro food processing enterprises (pm-fme) scheme
- Argo Processing Cluster Infrastructure Scheme
In addition, certain state governments provide capital subsidies, reimbursement of interests and infrastructure support to maize processing units.
Market Outlook Till 2032
India as specialty market for maize based products is projected to show a sustained growth owing to higher consumption of processed food products, pharmaceutical industry and personal care generated demand and also potential for import substitution. Additional processing capacity will be needed from many different regions to meet future demand.
Read More: Why India Still Imports Sorbitol? Maize Processing Industry Capacity & Business Opportunity
Final Conclusion
The maize-based specialty products industry provides a long-term, high-growth opportunity to investors and MSMEs in India. With the availability of a large amount of raw material, increasing downstream market, and robust government support, integrated maize wet milling plants are well positioned to power the next stage of agro-industrial growth.
Frequently Asked Questions (FAQs)
Q1. Is maize wet milling profitable business in India?
Yea, it’s making money because it has a diversified product and it has high demand in the domestic market.
Q2. Why does India import sorbitol though there is a surplus production of maize?
Due to poor domestic refining capacity of pharmaceutical grade.
Q3. Which industries are consumers of maize-based specialty products?
Food processing industry, pharmaceuticals, personal care, textiles, paper and fermentation industries.
Q4. The government provides subsidies to maize processing plants?
Yes, there are financial incentives available by both central and state governments.
