New Delhi, May 20 (Commodities Control): Maize prices in Bihar continued to show upward trend today, driven by active stocking activities despite lukewarm purchasing from manufacturers. The robust sentiment is further strengthened by a concurrent uptrend in other agricultural commodities such as wheat, mustard, cotton oilcake, and bajra.
At Gulabbagh mandi, maize prices increased by INR 20, ranging between INR 2150 and INR 2180 per quintal. The mandi saw steady arrivals, with 5000 tons of maize being brought in. The consistent inflow is primarily driven by active stocking and rack loading, which are key factors supporting the price stability.
Stockists remain highly active in the market, striving to meet their stocking requirements. This increased demand from rack buyers has pushed prices up by an additional INR 10-20 per quintal. However, manufacturers are hesitant to purchase at these higher rates, expecting an improvement in supply once the new crop from Uttar Pradesh enters the market.
In the Kolkata and Kharagpur zones, manufacturers are not willing to buy maize above the INR 2250 range, and the minimal export demand from Bangladesh is also contributing to the price ceiling. Conversely, the active stocking in Bihar is preventing prices from dropping, making it difficult for manufacturers to secure supplies at lower rates.
Ethanol producers are currently purchasing local maize at prices between INR 2225 and INR 2250 per quintal. Many of these buyers have secured storage facilities in Kannauj and surrounding areas to stock new maize supplies.
Approximately 80% of the maize arriving at the mandi is destined for stocking purposes. By the end of May, it is anticipated that 80-90% of the stocking process will be completed in Bihar. This timeline coincides with the expected start of maize arrivals from Uttar Pradesh, which could lead to a slight price correction in early June.
Despite the potential increase in supply from Uttar Pradesh, a significant decline in maize prices appears unlikely due to strong domestic demand. Ethanol buyers are expected to remain active within the INR 2225-2250 price range, suggesting that any price drop greater than INR 40-60 per quintal is improbable, even with increased arrivals from Uttar Pradesh.
Overall, while active stocking continues to support maize prices in Bihar, the reluctance of manufacturers to buy at current rates and the limited export demand from Bangladesh are balancing the market trends.
The anticipated new crop arrivals from Uttar Pradesh in June may offer some price relief, but a major decline seems unlikely given the ongoing strong demand from ethanol producers and other domestic buyers.
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