Bihar Maize Prices Remain Firm Amid Active Stocking

Mumbai, May 21 (Commoditiescontrol): Bihar maize prices continued to trade firm today, supported by active stocking activities. However, sluggish buying from manufacturers has limited the gains in prices. Sentiments are also buoyed by the uptrend in other commodities like wheat, mustard, cotton oilcake, and bajra.

At the Gulabbagh mandi, maize prices increased by INR 10, ranging from INR 2160-2190 per quintal. Arrivals remained steady at 5000 tons. Active stocking and rack loading are driving the price support. Stockists are aggressively buying to meet their stocking requirements, prompting rack buyers to increase their prices by INR 5-10 per quintal.

Manufacturers, however, are reluctant to purchase at higher rates, anticipating improved supplies once the new crop from Uttar Pradesh (UP) starts arriving. Manufacturers in the Kolkata and Kharagpur zones are not active in buying above the INR 2250 range, and negligible export demand from Bangladesh is also limiting any significant upside in prices.

Ethanol buyers are currently purchasing local maize within the INR 2225-2250 range. Many ethanol buyers have secured godowns and warehouses in the Kannauj and nearby belts to stock new maize supplies. Imported corn at Tuticorin traded up by INR 10 per quintal at INR 2450 per quintal, with similar prices seen in Karnataka consumer markets.

Around 80% of the mandi arrivals are being stocked. By the end of May, around 80-90% of stocking in Bihar is expected to be completed. During this period, new arrivals from UP are anticipated to start, potentially leading to a slight price correction in early June.

Despite this, a significant decline in maize prices seems unlikely in the near term due to continued active stocking over the next 8-10 days. Even with the new arrivals from UP, any major price drop is unlikely amid strong domestic demand. Ethanol buyers are expected to remain active within the INR 2225-2250 range, making any significant decline (more than INR 40-60 per quintal) improbable even with increased arrivals from UP.