Market Forces Fail to Diverge Paddy Cultivation Despite Sustained Ethanol Price Surge

Analysis indicates that maize-based ethanol prices have experienced an annual increase of 11.7%, a significant market signal that has nonetheless failed to incentivize a shift among paddy farmers toward maize cultivation. This persistent agricultural pattern underscores a complex interplay of economic and structural factors. While price mechanisms typically drive crop substitution, the observed resistance suggests deep-rooted dependencies on existing paddy farming infrastructure, supply chains, and farmer expertise. Concurrently, the focus on maize for ethanol production has precipitated a decline in the cultivation of pulses and other diverse crops, potentially compromising nutritional security and agricultural resilience. This trend raises critical questions about the efficacy of price-based policy interventions in altering long-established farming practices. The situation warrants a comprehensive review of agricultural incentives, infrastructure support, and diversification strategies to align market signals with broader food security and sustainability objectives.