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CHAPTER-IV
MAIZE PRODUCTION AND PROCESSING
A. Maize Production
- Origin, Maize
- Global scenario
- Maize Production in Kamataka
- Maize Production in the Study Area
- Problems of Maize Production
- Uti 1 ization Pattern of Maize
Marketing of Maize
- Farm Gate Price of Maize
B. An Overview of Maize Processing
- Chemical Composition of Maize
- Potential Products from Maize
a Maize milling- Dry and Wet Milling
- Main and By-Products of Maize
a Status of Maize Processing Industry
- Indian Scenario
- Status of Maize Products Marketing in India
a Factor endowments for Setting up of Maize Processing units
a SWOT Analysis of Maize Processing in Karnataka
- Economic Impact of Maize Processing
- Employment Opportunities
CHAPTER-IV
MAIZE PRODUCTION AND PROCESSING
The objective of this chapter is to ascertain the production and processing
methods of maize. The production and processing are two important activities in
the maize value chain. These two areas are presented in two different sections in
this chapter. Section A deals with the maize production at global, national, state
level and lastly in the study area. Section B deals with industrial processing of
maize by dry and wet milling operations and producing value added products. This
section also highlights the factor endowments for setting up of maize processing
units.
A. Maize production
Maize, a kharif crop, is perhaps the only coarse grain in India whose
production and yield has shown a steady growth in the past 5 years. It has
emerged as the third most important crop after wheat and rice.
Maize is cultivated under diverse environmental conditions. Globally,
maize accounts for 15 per cent of the world's proteins and 19 per cent of the
calories derived from food crops. It is the single largest source of calories and
protein for the poor in about 20 countries and a primary weaning food for the
babies. It is also used to a considerable extent in poultry feed and as an industrial
raw material in the manufacture of starch.
96
Origin
Maize (Zea. Mays) has been cultivated for thousand of years. During
archeological excavation in New Mexico, grains of maize and parts of maize ears
were found in caves and rocks shelter, which are thought to be about 4,500 years
old. Of even earlier origin, pollen grains of Zea tripsacum and euchlaena were
found at a depth of about 50 meters under Mexico City, (Weather wax and
Randolph) . At the time of discovery of New world, maize was already cultivated
in many parts of the American continent, especially in the more highly developed
regions of Mexico, Central America and South America where it formed the staple
diet of the indigenous population. Recently, it has been postulated that maize
came to India well before Columbus discovered America in 1942. For a long time
it was thought that maize was descended from a hybrid between teosinte
(Euchlaena Mexican Schard) and a known wild plant Collins .
Global scenario
The total area under maize cultivation in the world is 139 million hectares
with a production of 598 million MT. (M.MT). USA is the world's largest
producer and exporter of maize with all output of 250 MMT from an area of 29
million hectares. Other major producers are China (125 MMT); European Union
(39 MMT); Brazil (37 MMT); Mexico (19 MMT); Argentina (14 MMT) and India
(11 MMT).
97
Table - 4.1: Major maize producing countries
Country Area (M.H) Production (M.T) Yield Tonne / Ha
USA 29.6 250 7.98
China 23.1 125 5.20
Brazil 13.4 37 2.39
Mexico 7.9 19 2.19
France 1.72 14.5 8.40
India 6.15 11 1.59
Source: Maize 2004 Note: M.H. = Million Hectare; M.T. - Million Tonne; Ha - Hectare.
The above table-4.1 shows the major maize producing countries. USA is
the number one produces followed by China, Brazil and Mexico. India produces
only 11 million tones of maize where as USA produces 250 million tones. Among
all cereals, maize occupies the fifth largest in area, fourth largest in output, and
third largest in yield in the world. India is the tenth largest producer with a
production of 11.10 MMT from an area of 6.6 million hectares. The average yield
in India is 1.77 MMT- 2 MMT / a hectare, which is very low as against 7 MT/ha.
in temperate areas of developed economies and 3.8 MT/ha. of global average.
98
4.1 Major Maize Producing Countries
250 n =
2004
150
1 I i I
USA China Brazil Mexico France India Countries
II Area (M.H) - Production (M.T) : Yield Tonne / Ha^
99
The below given table shows the area, output and yield of maize in India
from 1950-51 to 2004-05.
Table - 4.2: Area output and yield of maize in India
Year Area Output Yield
1950-51 31.59 1.73 547
1960-61 44.07 4.08 926
1970-71 58.52 7.49 1,279
1980-81 60.05 7.00 1,159
1985-86 57.97 6.64 1,146
1990-91 59.04 8.96 1,518
1995-96 59.79 9.53 1,595
1996-97 62.60 10.77 1,720
1997-98 63.21 10.82 1,711
1998-99 62.04 11.15 1,797
1999-2K 64.22 11.51 1,785
2000-01 65.57 12.07 1,841
2001-02 66.00 13.30 2,015
2002-03 57.00 10.57 1,854
2003-04 55.00 10.25 1,800
2004-05 63.00 12.00 1,950
Note: Area, Million Hect.; Output, Million Tonnes; Yield, Kg/Hect Source: Director of maize research (DMR) report
According to the above table-4.2 maize production in India is increasing
year by year. The increase in the maize production in terms of area, output and
yield indicate that maize is becoming one of the prominent agro produces in India.
Maize is cultivated in almost all states in India. The leading maize producing
states in India are Kamataka, Bihar, Rajasthan, Madhya Pradesh, Uttar Pradesh,
Andhra Pradesh, Himachal Pradesh, and Maharashtra etc. The crop is grown in
three seasons - kharif, rabi and summer. More than 70 per cent is grown during
kharif season.
100
4.2 Production of Maize in India
3 a. 3
o
<o' <o- <^ <b' <b^ ci'̂ ^ <^ ^ ^ <&• ^ ^ C? d^ <^
, # , # • , . ^ ^ ' , # . # , # . # , # , # . # • , # > • / • # • # # '
Year
101
Table - 4.3: Production performance of major maize growing states
States Area (Million Hect.)
Production (Million. Tonnes)
Yield (kg/lia)
Bihar 11.36 13.18 2184
Madhya Pradesh 13.30 10.87 1537
Punjab 02.53 03.60 2671
Rajasthan 14.93 09.41 1186
Uttar Pradesh 14.71 12.14 1554
Andhra Pradesh 07.14 12.05 3177
Gujarat 06.29 05.44 1628
Himachal Pradesh 04.59 05.79 2377
Karnataka 09.49 14.41 2859
Maharashtra 04.46 03.34 1410
Jammu & Kashmir 05.01 04.17 1567
Source: Director of maize research report 2004.
The table-4.3 provides information on the major maize producing states in
India. Karnataka is one of the important maize growing states in the country. The
average yield and production of maize in the state is highest in the country
compared to other states. Other major maize growing states are Bihar, Uttar
Pradesh, Madhyapradesh, and Andrapradesh.
Maize production in Karnataka
Karnataka is one of the agriculturally rich states in the country, which
grows varied types of agro and horticultural products. The major agro-products
grown in the state are paddy, jowar, maize, wheat, bajra, ragi and other cereals.
102
Table-4.4: Principle agricultural crops in Karnataka
Crops Year-> 2001-02 2002-03 2003-04
Paddy Area (HA) 1358549 1353463 1426805 Paddy
Production (M.T) 4814818 4816538 5482463
Paddy
Yield (Kg/tIA 3731 3746 4045
Jowar Area (HA) 1998542 1896999 1849867 Jowar
Production (M.T) 1897726 1254001 1643239
Jowar
Yield (Kg/HA 1000 696 835
Maize Area (HA) 445650 561377 512368 Maize
Production (M.T) 1385196 1510957 1671282
Maize
Yield (Kg/HA 3272 2833 3404
Bajra Area (HA) 416553 302176 417113 Bajra
Production (M.T) 270376 132905 283285
Bajra
Yield (Kg/HA 683 463 715
Ragi Area (HA) 1036204 938548 1030679 Ragi
Production (M.T) 1496149 1273013 1734076
Ragi
Yield (Kg/HA 1520 1428 1771
Source: Fully revised crop system in Karnataka
The above table-4.4 shows the principal crops grown in Karnataka. The
important crops are paddy, jowar, maize, bajra, ragi etc. In Karnataka maize is
grown in all the three seasons i.e., kharif, rabi and summer. The maize production
in the state for the last ten years is given in the below table.
103
Table - 4.5: Area and production of maize in Karnataka
Year Area (Lakh Hectare)
Production (Lakh Tonnes)
Yield Kg/Hectare
1970-71 1.63 2.17 ~
1980-81 1.57 3.81 ~
1990-91 2.50 6.30 ~
1991-92 2.83 8.55 3178
1992-93 3.15 9.77 3263
1993-94 3.18 9.47 3141
1994-95 3.44 9.87 3025
1995-96 3.65 11.42 3294
1996-97 4.46 13.85 3272
1997-98 5.61 15.11 2833
1998-99 4.98 16.18 3420
1999-00 4.92 14.89 3186
2000-01 4.80 14.50 3250
2001-02 4.45 13.85 3272
2002-03 5.61 15.10 2833
2003-04 5.12 16.70 3404
2004-05 5.40 16.90 3300
Source: Indian Agricultural Research Institute report.
According to table-4.5 maize production is constantly increasing year by
year. For the lost few years there is a slight decline in the production due to sever
drought in the state. In terms of production and yield, Karnataka stands first
among the maize producing states (Ranjith Kumar Singh, Vol. 17, 2004) . The
state is also witnessed the maximum increase in maize area. Except two coastal
districts, maize is grown in all other districts in the state. The district wise maize
production is given in the below table.
104
Table - 4.6: District-wise maize production in Karnataka during 2004-05
SI. No. District Kharif Rabi Summer SI. No. District
Area Prodn. Area Prodn. Area Prodn.
01 Bagalkot 30630 92831 10520 24026 2229 4976
02 Bangalore 977 3216 165 338 273 621 03 Bangalore rural 4870 15072 68 139 430 978 04 Belgaum 75232 239651 30633 58696 3305 7692
05 Bellary 30252 95976 1217 2472 621 1412
06 Bidar 233 585 47 78 12 27 07 Bijapur 5751 21373 4216 9629 2203 4918
08 Chamarajanagar 7137 30038 1508 3093 484 1100
09 Chickamagalur 460 1567 ~ ~ ~ ~
10 Chitradurga 32832 103976 374 767 180 409 11 Dakshina Kannada — ~ ~ ~ ~ ~
12 Davanagere * 103618 383191 1 2 61 139 13 Dharwad 18467 65095 76 154 14 32 14 Gadag 17956 64872 17 35 90 205 15 Gulbarga 1312 4287 163 331 546 1241
16 Hassan 5057 16901 156 304 29 66 17 Haveri 53828 174707 80 164 155 352 18 Kodagu 1495 5800 — — ~ ~
19 Kolara 13482 45983 64 131 475 1080
20 Koppal 14984 54206 285 583 395 898 21 Mandya 22 77 — ~ — ~
22 Mysore 17459 74847 109 215 34 77 23 Raichur 216 741 — ~ 33 75 24 Shimoga 8268 32078 1 2 26 59 25 Tumkur 5889 15450 220 444 110 250 26 Udupi ~ ~ ~ — ~ ~
27 Uttara Kannada 45 92 2 2 ~ ~
Total 450472 1542607 49922 101605 11705 26607
Note: Area = in Hectares; Prodn. = In Tonnes Source: Fully revised crop estimate in Karnataka
105
According to the table-4.5 maize is grown in almost all districts in state.
Maize is predominantly grown in north Karnataka districts such as, Belgaum,
Bagalkot, Bijapur, Bellary, Dharwad, Davangere Gadag, Haveri etc. Maize has
diversified uses as food, feed and industrial raw materials. It has emerged as one
of the leading crops in the state. In India it is an important staple food for millions
of poor. In recent years, significant changes have occurred in the Indian maize
sector due to increasing commercialization of the agricultural economy. More
than 50 per cent of the maize produced in the country is used as animal feed, and
evidences suggest that the demand for maize as feed will increase faster with
rising demand for meat, (Delgado et al)'*. There is a considerable regional
variability's in the maize production and yields in India.
The southern states like Karnataka, Andhra Pradesh, are emerging as
important maize growing states have sizeable area under the crop. The maize
yield per hectare is much higher in these states than other states in the country. On
the other hand, states like Uttar Pradesh, Bihar, Rajasthan, Madhya Pradesh and
Punjab, which were the heartland of maize production before the green revolution,
could not reap the benefit of technological developments in the maize sector.
The average annual production of maize in Karnataka is over 17 lakh MT,
which is about 10 to 15 percent of the total maize production in India. Analysis of
the time series for the years reveals that there is a constant increase in the area,
quantity of production and yield of maize. There was a decline in the production
106
as well as its area for the last three years in the state i.e., from 2000-01, 2001-02,
and 2002-03. The decline was due to drought hit in the maize growing district of
the state.
In Kamataka, large share of maize production comes from the northern
Kamataka districts like Belgaum, Bijapur, Bagalkot, Dharwad, Bellary Gadag etc.
The average yield in these districts is also quite impressive.
Maize production in the study area
This study has considered six important maize growing districts in the state.
The maize grown in these districts is nearly 40 per cent of the total maize
produced in the state. The districts select for the study purpose include- Belgaum,
Bijapur, Bagalkot, Bellary, Gadag and Dharwad. The cluster of these district share
the commonality in several aspects, such as, agriculture, climate, food habit of the
people, agricultural production etc. Maize is the number one crop in these districts
grown in all the three seasons - rabi, kharif and summer. The table given below
shows the maize production in the study area.
107
Table-4.7: Maize production in the study area during 2004-05
District Kharif Rabi Summer
District Area Prod. Yield Area Prod. Yield Area Prod. Yield
Bagalkot 30630 92831 3190 10520 24026 2404 23 40 1850
Belgaum 70686 233142 3472 29654 57335 2035 300 352 1850
Bijapur 5751 21373 3912 4216 9629 2404 ~ ~ ~
Dharwad 18381 64977 3721 74 152 2159 12 21 1850
Bellary 30252 95976 3340 1217 2472 2139 ~ ~ ~
Gadag 17956 64872 3803 17 35 2159 ~ ~ ~
Total 173656 573171 ~ 45698 93649 ~ 235 413 ~
Karnataka 445586 1535627 3628 48899 100187 2157 269 473 1850
Percentage 39 37.3 3573 94 93.5 ~ 87 87 ~
Source: Joint Directors of District Agriculture
According to the table-4.6, maize is largely grown during khariff season
followed by rabi. During summer it is grown in very less quantity. In recent years
there is a slight decline in the production of maize in the state due to the draught in
the state. Lack of incentives for growers, such as remunerative price and
processing to utilize the surplus maize in the state are the reasons for distress sale
of maize. Therefore, maize-processing units in Karnataka could be a solution for
the price gluts. Processing units create better market for the maize by producing
more value added commercial products. Since, Karnataka is the leading maize
growing state in the country, few small and large-scale maize processing units in
the state may enhance the market value of maize.
In the study area, maize is an important agricultural produce, grown in all
the three different seasons. Availability of Maize in all the seasons ensures the
maize supply almost round the year. Maize processing industry is basically
108
resources based industry. Therefore, establishing maize processing units near the
availability of maize will have several benefits. It reduces the transportation cost
of raw materials, ensure regular supply and create good number of employment
opportunities. The direct and indirect employment opportunities the maize
processing creates in the region would solve many social and economic problems.
Maize milling unit would give birth to several supporting industries like
transportation, packaging, primary processing, catering etc. Processing will also
encourage the farmers to grow better quality and quantity Maize for good prices.
Therefore, maize processing at industrially backward district would solve many
problems such as -
> Migration of rural people into cities
> Standard of living in rural areas
> B etter utilization of agro-produce
> Employment and income generation in rural areas
> Development of region as a whole
Problems of maize production
1. Lack of systematic regulated marketing
2. Negligible processing
3. Price glut during harvest
4. Dependency on rain fed conditions
5. Least preference by farmers in view of lower returns
109
The above problems can be considerably reduced by the combined efforts
of farmers, policy makers and Government departments through the combination
of developmental and policy measures and also using appropriate post-harvest
technology.
Utilization pattern of maize
The major share of the maize produced in the developed countries is either
utilized for production of ethanol or production of feed for livestock. Maize
produced in India is utilized for human consumption, starch production, poultry
feed, brewery and animal feed. There is no precise data available on the
utilization pattern in Kamataka. However, an average consumption in the state is
estimated on the basis of the natural average. It indicates that only 30 per cent of
the maize is utilized for human and animal consumption in the state. The
remaining 70 per cent is supplied to different types of processing factories in and
outside the state. There is only one large-scale maize-processing unit in Kamataka.
Whereas, there are 6 units in Gujarat, 7 units in Maharashtra, 3 units in Madhya
Pradesh and one unit each in Punjab, Chattisgarh and Tamil Nadu. The
marketable surplus of the maize in Kamataka is largely supplied to maize
processing units is Maharashtra and other states.
110
Marketing of maize
The demand for maize has been growing very rapidly in both domestic as
well international markets. An analysis of different uses of maize in the country
indicates that domestic demand for maize is growing much faster. The growth is
mainly due to increased utilization of maize as feed and industrial raw material.
Marketing of agro-produces in the state is not strictly regulated. APMC,
which is the regulated market, facilitates the sale of agricultural output by linking
growers and dealers. But, large quantities of agro-produces are sold in open
market. There are three channels used by maize growers in the state to sell the
surplus maize.
1. Selling surplus through APMC dealers
2. Selling surplus to the intermediaries and middlemen in the open market
3. Selling maize directly to the maize processing units
Traders offer low price to the growers and cheat farmers in weighment.
The maize purchased from farmers in the state is supplied to maize processing
units i.e., food, feed and industrial purposes. Starch units in adjoining states like
Maharashtra, Madhya Pradesh and Gujarat purchasing maize from the state.
Farm gate price of maize
The market prices of Indian maize fluctuate between Rs.350 per quintal to
Rs.750 per quintal in different states and in different seasons. The price is
normally high for rabi season maize than kharif season maize. The price
111
fluctuation is due to seasonality of production, it creates a demand and supply gap
during off-season. In order to reduce the demand supply gap, the government
imports maize from other countries.
Price fluctuation for maize is not very wide in Karnataka in particular and
in the country in general. Farmers are in the opinion that the price of maize at
times falls below the cost of production. In recent years, there is vjo significant
increase in the price of maize. However, it is an important commercial crop of
farmers in the state. Government of Karnataka also came forward to protect the
farmer's interest by opening procurement center.
Table - 4.8: Maize price prevailed in the State
Year Price / Quintal
1998-99 403
1999-00 416
2000-01 425
2001-02 430
2002-03 450
2003-04 470
2004-05 500
Source: APMC Report, 2005
According to above table-4.7, for a period of seven years the market price
of maize has not considerably increased. According to the growers, at times, maize
price would be below the cost of production. To compensate the loss,
Government uses its purchasing centers with supportive prices.
112
B. An overview of maize processing
Maize is an important cereal crop in India. It is exclusively cultivated in
India in Plaines as well as in the hilly regions, especially in the areas with hot
summer. In India, maize is grown as one of the leading commercial crops.
In India the local urban population use the maize in the form of food
ingredient. For chapatti making, it is used as a major cereal in the traditional area.
The use of processed maize foods for breakfast and snacks is very little. In
addition, green ears are consumed in roasted form. In bakery production, maize
has played an important role in the human diet in the urban areas. Use of bread,
buns, rusks, biscuits etc., it popular. It is also used in baby protein supplementing
foods. Opaque-2 variety, protein supplement from maize, can make much cheaper
formulation and valid protein supplementing foods.
All the major sweeteners are commercially made from maize starch. Maize
starch is a polymer of anhydrous glucose units (dextrose) and is the raw material
for sweeteners. To make them starch chains, they are depolymerized with acids or
enzymes or with both into dextrose or short-chained dextrose polymers. The
maize syrups and HFCS are sold as liquids. Many industries in Haryana, Gujarat,
Punjab, Madhya Pradesh and Uttar Pradesh have come up to derive starch from
maize.
113
Importance of maize as a food and industrial product can be seen from its
varied applications as given below.
1. Modified Starches: Maize starch and its derivatives are essential e.g.,
"binder" for high precision casting moulds, and compounds oil well mud,
to cool and lubricate rotary drilling bits. Starch has 280 varieties on regular
sale e.g.. Polyvinyl alcohol, polyvinyl accato and acrylic adhesives both
organic and synthetic products in the compiled field of sizing, finishing and
adhesive products.
2. Starch Derivatives: The main starch-derivatives i.e., dextrose and glucose
(in the food confectionery and pharmaceutical industries) and to a smaller
extent for destine (e.g. in foundry and oil well drilling operations.
3. Maize Oil: Maize oil is very fine cooking medium when fully refined with
nearly 90 per cent polyunsaturated fats e.g. com oil.
4. Alcohol / Ethanol: Alcohol both as a substitute for petrol as being
developed in Brazil and as industrial ethyl alcohol.
5. Organic / Synthetic Co-Polymers: Biodegradable plastics made by co-
polymerizing organic (starch) and synthetic polymers are already in use for
agriculture and other proposes.
114
Maize (zea. Mays) is classified into dent, flint, waxy, sweet and popcorn
categories. Dent com also known as field com, containing both hard and soft
starch becomes indented at maturity. Flint com having hard, homy rounded or
short and flat kemels, with the soft and starch endosperm is enclosed by hard outer
layer. Both of these varieties are used for industrial purposes. Popcom has small
pointed and rounded kemels with very hard endosperm which an exposure to dry
heat poped or evened by the expulsion of the contained moisture and forming a
white starchy mass many times the size of the original kemel. Sweet com is
distinguished by kemels containing a high percentage of sugar in the milk stage
and therefore suitable for tablet use.
Chemical composition of maize
Maize kemel consists of three main parts namely hull or bran coat, with
high fibre content, embryo or germ rich in oil and starchy endosperm. The
proposition of the three kemel parts are approximately as follows (per cent of
whole kemel) bran 4.4 - 6.2 (avg. 5.3); germ and scutellum 10.2 - 14.1 (avg.
11.9); and endosperm, 97.7 - 83.5 (avg. 81.9); tip cap, which is usually removed
with the huUer milling forms 0.8-1.1 percent (avg.0.83per cent).
Table-4 .9: Approximate composition of kernel factors
Kernel Faction Protein (%) Oil (%) Starch (%) Sugars (%) Ash (%)
Endosperm 9.4 0.8 86.4 0.64 0.31 Germ 18.8 34.5 8.2 10.81 10.10 Bran 3.7 1.0 7.3 0.34 0.84 Tipcap 9.1 3.8 5.3 1.61 1.59 Whole kernel 10.3 4.8 71.5 1.97 1.44
Source: Maize India, 2004.
115
Potential products from maize
Maize is the main raw material for the starch and starch-derived products.
The maize starch industry in terms of volume and value of the final products is
most important sectors in the world. About 57 per cent of the maize produced in
India is used in poultry and cattle feed. Thirty three per cent is used as food; only
9 per cent is used in manufacturing starch and allied products, and one per cent as
seed. In the US and European countries maize is mainly used to produce starch
and other industrial products.
Table - 4.10: Worldwide productions of starch from different sources
SI. No. Raw material Quantity ('OOOMT) Percentage (%) 01 Maize 27,380 74 02 Waxy maize 370 01
03 Wheat 2,960 08
04 Tapioca 3,700 10
05 Potato 2,590 07
Total 37,000 100
Source: Maize India, 2004.
According to table-4.9, maize is the major raw material for starch production
followed by tapioca and wheat.
Table - 4.11: Production of starch in various geographical locations
SI. No. Region Quantity ('OOOMT) Percentage (%) 01 America 18,870 57
02 Asia 09,620 26 03 Europe 07,400 25
04 Africa 740 02
05 Australia / Oceania 370 01
Total 37,000 100
Source: Maize India, 2004.
116
According to table-4.10, USA is the top producer of starch followed by
Asia and Europe. Industry manufactures over 5 billion pounds (2.3 billion Kgs) of
starch in United States per year. More than 50per cent of the starch is sold to
industries and remaining is converted into dextrin and starch group. The data
given below shows the starch production of USA, Europe and India.
USA 22.95 MMT
Europe 06.75 MMT
India 00.55 MMT
Though, India is one of the largest producers of maize in the world, value
addition in the form processing is very less compared to advanced countries. In
advanced countries large part of the starch produced is converted into both high
value added nutrient sweeteners such as glucose, syrup, dextrose and fructose
syrup.
Table - 4.12: Estimated starch demand by various industries in India
Industry Demand (MT) Textile 1,15,000
Food 12,300
Pharmaceuticals 10,000 .
Paper 11,750
Total 1,49,050
Source: Maize India, 2004.
The table-4.12 shows that, text tail industry is the number one in consuming
starch followed by food, paper, Pharma, adhesive confectionary etc. The starch
and starch derived products demand in India is presently met by local production
117
as well as by importing from other countries. Therefore starch industry in India is
having a wide scope due to the growing demand for starch products. There is a
good demand for starch and starch-derived products in national and international
markets. The maize is an important raw material for starch and allied products in
the world. Production of starch and starch-derived products in India is given in
the below table.
Table-4.13: Production of starch and starch-derived products
Product TPA
Dry starch powder 1,55,000
Glucose syrup 1,10,000
Dextrose monohydrate 55,000
Sorbital 50,000
Source: Agricultural Economics Research Review, 2004.
The table-4.13 shows the starch and starch derives products manufactured
in India by maize. The surplus demand for the above products is presently met by
the imports. Therefore, maize-processing units would be at high demand in the
future.
Maize milling
Maize is one of the staple foods for poor families. Traditionally, the grain
is converted into flour in mills for making bakery products. Immature cobs are
roasted and eaten all over country. Maize is an important raw material for animal
and poultry feed and cornflakes manufacturing units. But the quantity of maize
utilized by these units is limited as the easting units are of small-scale in nature.
118
They make only a few products having limited demand. Hence, alternative large-
scale units, which can process a large quantity of maize to produce different value,
added products are required to be setup.
Maize is usually processed by two distinct processes, namely dry milling
and wet milling. Dry milling produces grits, com flour, and minimum amount of
com meal. Dry milling technology is developed by CFTRI, available on price.
The dry milling units have a crushing capacity of 10 MT/day with a project cost of
Rs.20 lakh. Such units can be set up in any where in the state depending upon the
availability of raw materials, power and suitable land.
Dry milling
The maize kernels are screened, tempered with hot water/steam to loosen
the germ and bran. Then it is de-germinated to remove the germ. The husk is
separated by means of aspirators. The degermed maize is subjected to milling to
produce grits, meal and flour. The germs separated is dried and passed through an
expeller to produce the com oil.
Table - 4.14: Different products that result from dry milling
SI. No. Product Share (%)
1 Grits 40
2 Coarse meal 20
3 Germ 14
4 Fine meal 10
5 Flour 5
6 Hominy feed 10
Source: Report CFTRI, Mysore.
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The table-4.14 shows the products obtained form maize processing from
dry milling operation. These dry milling units are small scale units can be
established with less investment. CFTRI has developed a mini mill for dry milling
of maize. The grits is the main product of dry milling process, which is used as
porridge by boiling domestically. The processing units use grits for manufacture of
products like ready-to-eat snacks (com flakes), wallpaper paste and manufacture
of glucose by direct hydrolysis. The process flow of dry milling is as under:
Cleaning => Conditioning => De-germinating => Drying & Cooling =>
Grading & Grinding => Sifting & Classifying => Purifying => Drying =>
Packaging
Wet milling
Maize is generally processed to manufacture cornstarch by wet milling
method in the world over. The by-products of starch manufacture, like com oil,
com steep liquor, gluten etc. are the important value added products. The grain is
unloaded from the tmcks directly in receiving area or stored in silos. The material
is fed to the cleaning section by a feed conveyor.
The cleaning section is housed in 3 floors, where the material is screened
for debris such as sand, stones and any other foreign particles. The clean material
is then sent to steeping section. It is received in a tank where it is washed with hot
water first and subsequently steeped in water containing sulfur dioxide at 0.2 per
cent for 70 hrs at 52°C. Steeping softens the kernels and also removes some
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soluble. Sulphur dioxide act as preservative. The steep water produced in this
process is then concentrated and fortified with vitamins, minerals to produce com
steep liquor. It is then subjected to primary and secondary grinding, wherein the
germ and husk are separated.
The degermed maize is passed through a fibre washing section where the
fibre (husk) is separated by pressure washing. Now the mixture consists of gluten
and starch. The gluten is separated from starch by centrifiigal separation. The
starch slurry is then passed through a 12-stage hydroclone washing system,
wherein the starch is washed and concentrated simultaneously. Starch slurry
usually has moisture content of 42 per cent. The starch slurry thus obtained is
diverted to various production lines for manufacture of liquid glucose
and modified starches such as dextrose, dextrose mono hydrate etc. The wet starch
is then dried by hot air by passing through a drier. The dry starch has moisture
content of 11-12 per cent.
The slurry containing gluten is passed through a rotary vacuum filter in
which a portion of the moisture is removed followed by drying in a hot air drier.
The dried gluten thus obtained has moisture content of 12 per cent. The gluten is
mainly used for poultry feed. The average recovery of various products and co-
products of maize during the wet milling are
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Starch - 60-62 per cent
Gluten - 8-9 per cent
Germ - 6-7 per cent
Husk - 22-24 per cent
Wet milling process involves the splitting of the grain into four main
components, namely germ, bran (or fibre), gluten and starch in sequence. Maize
starch is extensively used as a sizing material in the textile and paper industries. In
the food industry, it is used in the preparation of pies, puddings, salad dressings
and confections. Maize starch is used for the production of dextrose and com
syrup.
Main and by-products of wet milling
Starch is the predominant carbohydrate of the maize kernel (66.8 - 74.2 per
cent on dry basis). Starch occurs in the endosperm as granules of varying sizes
encased in a protein matrix. In the outer homy endosperm, the granule are small
and the protein matrix relatively thick; in the inner floury endosperm, the granules
are large and the protein matrix thin and weak. Lipids - Maize oil is obtained by
mechanical pressing or solvent extraction of the maize germs, which are a
byproduct of the maize milling industry.
About 84 per cent of the total fat of the kernel is found in the germ and 14
per cent in the endosperm, Cmde maize oil has a dark reddish amber colour with a
taste and odour characteristic of the original grain. For use as food, maize is
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ground to flour or whole-meal atta and baked into roti or chapatti; it is in this form
that maize is consumed in most parts of northern and western India. Whole-meal
maize atta, unlike wheat atta, does not form dough with elastic properties when
mixed with water and kneaded.
By using appropriate amounts of boiling water, dough for making flat cakes
may be obtained. Chapatis can be easily made from a blend of maize and wheat
flours. Excellent dough with good elastic properties can be made from maize flour
made from dehuUed grain. Treating maize seed with lime or ash does the
dehulling. Maize is also processed into semolina or suji and it substitutes for wheat
suji in various food preparations. The grain may be parched, ground to flour and
cooked into porridge. It is also eaten roasted or boiled on the cob.
Status of maize processing industry
The global production of starch from all sources was 48.5MMT in the year
2000. US with largest starch industry contribute 51 per cent followed by EU (17
per cent) and the rest by others. During the same period 39.4MMT of starch was
derived from maize, whereas potato and wheat contributed 2.6 and 4.1MMT,
respectively.
The world demand for starch products is growing at an annual rate of 4 per
cent. The demand for starch syrups is higher than dry starches in developed
countries, whereas in developing countries, the situation is reverse. Due to the
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steady growing demand, the total world output of dry starches and syrups were
estimated to reach 71MMT and 37MMT, respectively by 2010.
EU is the major exporter of both native and modified starches, followed by
US and Thailand. The largest starch consumers are US, EU, China and India. The
world per capita demand for starch is 8.4 kg/annum, whereas India's per capita
demand is 0.4 kg/annum.
Indian scenario
The wet milling industry in India is limited to certain pockets such as
Gujarat, Maharashtra, Madhya Pradesh, Punjab, Kamataka and Chattisgarh. There
are about 17 wet milling units with a crushing capacity of about 3400 MT of
maize/day. The state-wise number of wet milling units and the installed capacity is
given in the below table:
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Table - 4.15: Wet-milling units in India
SI. No.
Name of the State No. of Units
Installed capacity (MT of maize/day)
1 Gujarat 6 1,350
2 Maharashtra 5 1,050
3 Madhya Pradesh 3 450
4 Karnataka 1 300
5 Punjab I 100
6 Chattisgarh 1 150
Total 17 3,400
Source: Director of Maize Research, Annual Report
Table-4.15 indicates the distribution of maize processing units in India.
Gujarat is the largest producer of starch, having six units with a total crushing
capacity of 1350MT of maize per day, followed by Maharashtra with 5 units and
capacity of 1050 MTand Madhya Pradesh with 3 units and capacity of 450MT
maize.
The average processing capacity of the units in India is 200MT of maize /
day. There are plants with as high crushing capacity as 400 MT/day. However,
there is no plant in the country with crushing capacity of less than 100 MT/ day.
The selection of technology is very important as regards to the viability of the unit
is concerned. A unit in Buland Sahar, Uttar Pradesh has been reported to be closed
due to improper selection of technology.
125
Figure-4.1: Starch manufacturing unit in India
DNO of units A Total capacity (t̂ ilTcorrVday)
1600 •£ 1400 -B 1200 S 1000 8 800 ^ 600 -r 400 - t 200 I 0 u
K^^ <,'*• ^^ -^ . ^ J^
^^j'\<^''\y <^^ J ^^
State
^-^^ ^ ^ v ^
Status of marketing of maize products in India
The starch is the main product of a maize processing unit, which is
consumed in various other industries Uke food, pharmaceuticals, textiles, paper,
hotels and restaurants, etc. The other products include Gluten, Germ, Fibre (husk)
and Corn Steep Liquor. Gluten has great demand in animal feed industry because
of its high protein content (70per cent). Germ is used to extract germ oil, which is
low cholesterol containing edible oil. Animal feed manufacturers uses fibre,
mainly the husk. It has demand in wet form itself for animal feed. Com Steep
Liquor is one of the substitutes for culture media for manufacturing of antibiotics
and other microbial production systems.
126
In India, Mumbai, Delhi, Ahmedabad and Kolkata are the major markets
for processed maize products. Other important markets include Bhopal,
Hyderabad, Chandigarh, Lucknow, Bangalore etc. Most of the starch
manufacturers of Gujarat, Maharashtra, Punjab, etc., have their marketing offices
in Mumbai. Hence, Ahmedabad and Mumbai are the major trading centres for
cornstarch in India.
Maize processors directly market their products to the consumers like
pharmaceutical industries, hotels, textiles, paper industries, etc. and through
traders as well. Most of them have their marketing offices in metros and big cities
for direct sale. They also sell through trading agencies as well. These traders
restrict marketing of the products of one or a few companies and prefer to procure
different maize products from a single supplier. Therefore, it is advisable for a
maize processor to have processing facilities for starch and its derivatives like
liquid glucose, dextrose monohydrate, etc. Also, different industries require
different types of starch and the processor should be able to meet their demand to
compete in the market. Starch and Gluten have good export potential as well. India
exports these products to Sri Lanka, South East Asian countries, Bangladesh and
South Africa.
127
Factor endowments for setting-up a maize processing plant
Raw material
The viability of a maize processing plant depends upon the availability
and uninterrupted supply of raw material to the unit. On an average, a unit with a
crushing capacity of 100 MT/ day will require about 30000 MT of maize per year
(assuming 300 days of operation of the plant). Hence, the availability of raw
material is one of the important considerations in deciding the location of maize
processing unit. Keeping in view the cropping pattern, consumption of the maize
by local population and market surplus, it should not be a problem for a unit of
above capacity to procure the raw material. The plant will be able to procure major
portion of its raw material requirement with in the radius of 200 km. The state
produces mainly yellow dent corn, which is most suitable for wet milling for
manufacture of starch and other by-products. As the traders procure maize from
the farmers, the unit will be able to source the raw material from traders for
another 2-3 months.
Figure - 4.2: Raw material
^^.^^ ~~^V\^^cr'• t
128
Land
Land requirement of starch manufacturing unit is very high, as it requires
large area to set up plant and machinery and effluent treatment plant. There should
be enough land for disposal of treated wastewater. A unit with crushing capacity
of lOOMT/day should have at least 10 acres of land. However, if available at
reasonable price, the unit may acquire up-to 15 acre of land to meet future
expansion requirements.
Water
The water requirement for the wet milling industry is relatively large with
an average use of 4 cum per MT of crushing per day. For a wet milling unit of 100
MT capacities, therefore about 4-lakh liter of water/ day is required. The site
where wet milling units are set up should have a good source of water, preferably
a pereimial river. As the unit also generate high amount of sewage water, which
require to be disposed off properly. In case the water is to be sourced from ground,
the water table should be high and the areas should fall in white category of
unrestricted use.
Power
The average power requirement is about 170-250 units per day per MT of
maize crushing. The milling unit requires uninterrupted power supply and hence a
DG set is required as standby arrangement.
129
Steam
The steam requirement is 1 ton / MT of maize crushing. The units
manufacturing starch by wet milling in states like Maharashtra and Gujarat use
coal for production of steam.
Technology
The technology is indigenous except for starch-gluten separation and starch
washing unit, which is imported through companies like Alfa Laval. The
fabricators at Ahmedabad and few other parts of the country can fabricate the
entire plant. There are a number of suppliers for setting up of the plant on turnkey
basis.
Starch is usually manufactured from maize by a process known as wet
milling. The wet milling process is a complex process, which involves a series of
operations, by which the com is separated into three parts, the outer hull or bran,
the germ (the source of most of the com oil) and the endosperm (the source of
gluten and starch).
The critical operations, which have a direct bearing on the quality of the
fmal products, are
• Raw material selection and cleaning - Good quality yellow dent com
without various impurities will increase the quality of the final product.
• Steeping - Germination of maize and the microbial growth are controlled
by steeping.
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• Hydroclone washing - The simultaneous washing and concentration of
starch to the desired moisture and soHd level increases the quality and
marketability of the finished product.
Figure-4.3: Receiving
1
The corn is transported to the unit in trucks in gunny bags and offloaded in
receiving area or in silos. The receiving area should be designed in such a manner
that there is enough space for smooth movement of expected number of vehicles.
The grain is fed to the belt conveyor, which takes the maize grains to cleaning
section.
Cleaning
The grain contains various impurities like cobs, stones, metal parts, dust,
other foreign matter etc. These unwanted materials are removed in cleaning
section. The grain is passed over perforated metals sheets, air blowers, and
electromagnets to remove the impurities.
131
Steeping
The grain is fed into large steep tanks with hot water at 52 °C and steeped
for 70 hr. Generally; the existing units in India use RCC steep tanks. However,
steep tanks can also be fabricated by stainless steel but it increases the capital cost.
The RCC tanks should be designed in such a manner that it withstands the
gravitational force, as well as the weight of the material. Steeping mixture-
containing sulfur dioxide (SO2) at 0.2 per cent concentration in hot water is added
in the steeping tanks to prevent germination and bacteria. The steeping conditions
the grain for later steps by softening of the maize kernels and loosen the bonds
between germ, husk and endosperm. During the soaking process, nutrients are
absorbed into the water and this water is later evaporated to concentrate the
nutrients to get com steep liquor or condensed corn fermented extractives.
Grinding
The grinding process is completed in 2 stages. The grinders are made of
stainless steel with adjustable RPM with or with out pneumatic settings. There are
a number of manufacturers of grinding machines in India. In first stage, the
steeped maize grains are ground coarsely to loosen the husk and germ. The second
stage grinding, known as fine grinding, help in detaching the germ from the grain.
Germ separation (de-germination)
The pasty mix obtained after fine grinding is pumped to water filled settling
troughs, known as germ separators or determinations. It is a 3-stage process where
the slurry containing soluble husk, gluten and starch are separated from germ. The
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lighter density rubbery germ floats on the top and is skimmed off. The germ is
passed to germ drier which is finally sent to oil extraction unit. The germ contains
45 per cent oil and the rest is crude fibre and moisture. The starch manufacturers
generally prefer to sell germ rather than own oil extraction unit.
Fibre washing section
The slurry of husk, starch and gluten is ground for better recovery of starch.
The fibre washing is a 6-stage process, which is carried out by DSM box. The
husk is separated from the soluble starch and gluten slurry by a counter current
flow system. The husk is sent to either drying section or used as animal feed in
wet form. The husk is mainly carbohydrate, which also contains 8 per cent protein.
Thickening
The slurry of starch and protein is passed through a centrifugal concentrator
to get the concentrated slurry. This machine is also called as milk stream
thickener.
Primary separation
The thickened slurry is passed through a high-speed centrifuge to separate
the heavier starch from the lighter protein (Gluten).
Gluten thickening
The protein slurry is passed through a centrifuge to get concentrated slurry
of gluten. The gluten contains 65 per cent protein and is a good source of protein
for the animals and is used in animal feed preparation.
133
Rotary vacuum filter
The thickened gluten slurry is further concentrated to get gluten cake with
40 per cent solids through a rotary vacuum filter. The cake is further dried by hot
air and / or sun to bring down the final moisture content to 12 per cent.
Hydroclone system
The starch slurry received from the primary separation is passed through a
multi stage hydroclone system, which concentrates the starch slurry to 42 per cent
solid level. Alfa Laval is the main company supplying this system in India for
starch units
Drying
The concentrated starch slurry is then dried by hot air application (175 C)
to 11-12 per cent moisture content level.
The main product of wet milling of maize is starch. Besides, it produces
four major co-products for the feed industry namely the steep water, husk (hulls or
bran), germ and gluten. These co-products represent about 25-30 per cent of the
processed maize. The starch is raw material for various ancillary industries like
dextrose monohydrate, dextrin's, saccharin etc. For manufacture of further
derivatives of starch, ancillary units need to be attached with starch manufacturing
units.
134
The wet milling has developed into an industry that seeks optimum use and
maximum value from each constituent of the maize kernel. In addition to starch
and the various other products, and edible com oil, the industry has become an
important source of well-defined specialized ingredients used in feed formulation
industry.
Effluent treatment plant
Effluent treatment plant is an essential component of a starch industry. It
should be set up as per the norms of State Pollution Control Board. It has been
made mandatory to set up ETP in all starch-manufacturing units.
SWOT analysis of maize processing in Karnataka
Strengths
• Com production in the country has been growing steadily over the past five
years. The anticipated production of maize during the year 2005-06 is
estimated to be in the range of 9-lOMMT.
• Government of India's initiative to increase the area of cultivation and
production of maize during the 10' Five Year Plan period and its inclusion
under the technology mission give impetus to maize production in the State.
Directorate of maize has set a target to raise the output of maize to 18MMT
by the end of the tenth plan period mainly through increase in yield to 23-
24 q / ha.
135
Starch manufacturing from maize generates about 1 MT of by-products for
every 2 MT of starch produced and these by-products are worth more per
MT than maize itself making the starch manufacture an economic venture.
Strong raw material base in the study area with total production of 6.0-7.0
lakh MT and 4.5-4.75 lakh MT of marketable surplus.
Maize is becoming one of the cash crops for farmers, as a major part of it is
usually sold for market. Further, there is no substitute for it particularly in
rain fed condition and so the farmers will continue to grow maize.
Agro processing is one of the thrust areas for the Government of Kamataka.
A special package of incentives is available for the processing units set up
in North Kamataka.
Maize processing plant in Kamataka shall not face any difficulty in
marketing its products.
The maize starch is a preferred product compared to its substitutes like
potato starch and tapioca starch.
The productivity of maize is high which can still be raised. Higher the
productivity, lesser will be the cost of production.
136
Weaknesses
• Seasonal availability of maize in Kamataka. Kharif crop is only the major
source. In other season Maize is not grown in huge quantity, required
quantity of the local raw material may not be available in other seasons. To
run the plant during summer and rainy season maize grain has been
procured from other states or buffer stocks to be maintained by the
processing units.
• Competition for maize procurement by the poultry feed industry would
limit the raw material availability.
• No organized market/ single place for bulk procurement. Maize has to be
procured from individual farmers or through middle men/traders, which
may hamper the regular availability or may cause price fluctuations.
Opportunities
• Backward linkage with farmers (contract farming type arrangement) is
possible, as maize has become one of the cash crops in the state.
• Demand for starch is high from varied users like food, pharmaceuticals,
textiles, paper, packaging etc.
• The demand is likely to increase to 186 lakh MT by 2011-2012
• Great export demand for corn gluten as a poultry feed in South East Asian
countries.
• Substantial subsidies from the Govt, in the form of land, subsidized power,
water etc.
137
Cornstarch is identified as one of the ingredients for manufacture of
biodegradable plastic. The demand for cornstarch is expected to increase in
future.
Cornstarch is a substrate for manufacture of alcohol, which has been
identified as an environment friendly fuel.
Threats
Maize cultivation is gambling with rainy season and mainly grown under
rain fed conditions.
Stiff competition from imports and other producers within the country.
SWOT Analysis
Strengths Weaknesses
- Growth in maize production. - Seasonal raw material.
- Adequate support from the - Poor farmer education. government. - No organized market.
- Huge marketable surplus. - Processing technology. - Maize processing generates more
number of value added products. - High cost of production.
- Maize starch is preferred over other starch by the industrial customers.
Opportunities Threats
- Contract farming. - Maize cultivation is gambling with
- Substantial subsidy for maize monsoons.
processing. - Competition from imported starch.
- Application of maize product can be - Lack of coordination between diversified in to different industries. growers and processors.
- International market.
The strengths and opportunities of maize processing in Kamataka outweigh
weaknesses and threats.
138
Economic impact of maize processing
Maize processing is having more positive economic impact. It utilizes
locally available rav^ material to produce value added products and create good
market for the same. The industry provides good employment opportunities in
rural areas. Further, it reduces the dependence on other country for import of
starch and other maize products. The farmers are benefited, as there will be a
ready market for their main kharif season crop. The processing units purchasing
maize from other states will get their raw material with in state at lower rates.
Employment opportunities
The wet milling unit creates both direct and indirect employment
opportunities. The manpower requirement of the unit is given in the below table
(4.16). The unit generates employment opportunities for around few hundred
skilled and unskilled workers directly. The chain goes on increasing down the line
in procurement and marketing.
Table - 4.16: Indirect employment opportunities around the unit
SI. No.
Particulars Man days/Day
1 Procurement and transport of raw material 30
2 Handling and transport of finished goods 30
3 Marketing of finished goods 200
4 Business opportunities around the unit 20
Total 280
Source: Project Feasibility Report, CFTRJ.
The above table-4.16 shows the indirect employment opportunity provided
by the maize processing unit. There fore, agro based industries in rural areas create
139
good number of employment and income opportunities. Maize is used for both
food as well as non-food industrial products. Non-food industrial products having
good commercial value. Large-scale maize processing produces large number of
industrial products and consumes more maize. There fore, large scale maize
processing provides more employment.
References: 1. Collins. 1988. Production of Hybrid Seed Corn. p. 565. In G. F. Sprague and J. W. Dudle (ed.)
Corn and Com Improvement. 18. American Society of Agronomy, Madison.
2. Weather and Randolp (1993). Maize breeding during the Development and Early Years of Hybrid Maize, p. 13. In D. B. Walden (ed.) Maize Breeding and Genetics. John Wiley and Sons, Nevv' York.
3. Delgado, CM. Rosegrant, H. Steinfield, S. Ehui and C. Courboise (1999). Livestock to 2020: The Next Food Revolution, Food Agriculture and Environmental Discussion Paper, 28, Washington, D.C., International Food Policy Research Institute (IFPRI).
4. Singh, R.P., Ranjith Kumar and N.P. Singh (2003). Transformation of The Indian Maize Economy; Different Perspective in Maize Production in India; Golden Grain in Transition, Eds: Ranjith Kumar and N.P. Singh (TB-ICN: 4/2003), New Delhi: Indian Agricultural Research Institute, pp. 1-28.
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