New Delhi, July 26 (CommoditiesControl): Maize prices in India have been on a declining trend over the past few sessions due to potential government actions aimed at regulating prices. This has led to cautious sentiment among buyers, further pressured by reduced placements during the Sravan month.
In Gulabbagh, maize prices have decreased by INR 60-80 per quintal over the past 6-8 days, now ranging between INR 2400-2500 per quintal. A similar trend is observed in other major urban centers.
In Maharashtra, particularly in Sangli, maize prices are currently quoted at INR 2850-2880 per quintal, marking a decline of INR 20-30 per quintal from recent highs. Buyers are hesitant to purchase at these rates, and stockists are selling at the current rates, though the selling pressure is not significant. The prices of Maharashtra maize may continue to decline by INR 20-40 per quintal in the near term due to the reluctance of bulk buyers.
Despite this, further declines in prices are challenging due to the weak local supply in Maharashtra and the reluctance of sellers in Uttar Pradesh to sell at lower prices. The ready spot rate in Uttar Pradesh is INR 2400, with forward August spot prices at INR 2450 per quintal.
In Tamil Nadu, buyers who previously purchased Bihar maize at INR 2825 per quintal are now hesitant, with imported maize at Tuticorin port priced at INR 2800 per quintal, a decrease of INR 50 per quintal over the past few sessions.
Concerns over high maize costs have led various industry organizations, including GEMA, AIPBA, CFLMA, and AISMA, to urge the government to reduce the import duty on maize to zero percent, citing a shortage of maize availability in the country. The demand for zero import duty from the poultry sector and potential sales of rice by the FCI to ethanol industries have further dampened the sentiment among bulk buyers.
Market participants anticipate that maize prices will remain rangebound with a negative bias in the near term, as the market awaits government decisions that could provide more clarity. Despite the current situation, vendors are not aggressively lowering prices, and there is still considerable time before new supply arrives in India. Even if duty-free imports are permitted, it will take time for imports to reach the Indian market.
Maize cultivation has reached 7.8 million hectares as of July 26, 2024, a 13.6% increase year-over-year, driven by demand from ethanol and poultry producers. However, market participants predict an increase in maize acreage in traditional soybean regions like Maharashtra and MP, although this is countered by government reports of record soybean acreage.
Overall, the maize market is likely to see continued cautious trading, with prices potentially stabilizing at lower levels in the near term.
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