New Delhi, July 18 (CommoditiesControl): Following a decline in previous sessions, maize prices in Bihar remained relatively stable on Thursday as vendors hesitated to sell at lower rates. Prices in Gulab Bagh held steady at INR 2400-2540 per quintal, with the highest grade valued at INR 2540 per quintal.
The ongoing upward trend in Bihar maize prices is expected to pause temporarily, though a substantial decrease is unlikely due to the weak overall stock position.
Several buyers from Tamil Nadu, the northern region, and Kolkata have recently reduced their purchasing costs by INR 30-50 per quintal but have struggled to secure supplies at these lower rates, potentially leading to an increase in prices. Currently, imported maize at Tuticorin port is priced at INR 2800-2850 per quintal, while Bihar rake delivery is exchanged at INR 2850-2900 per quintal.
Some customers in Pune have begun requesting Bihar maize, but the prices for Bihar maize are not yet aligned with the Pune market. Only a few purchasers are buying maize in the Gulabbagh region exclusively from the mandi, making a significant decrease in Bihar maize prices improbable given the inadequate supply situation.
Mandi rates in Uttar Pradesh remained stable, ranging from INR 2300-2400 per quintal. Due to a shortage of high-quality maize, superior loose grain is being sold at INR 2400 per quintal. A buyer in Panipat, Haryana, is purchasing high-quality maize from Uttar Pradesh at INR 2600 per quintal, excluding delivery costs. The freight charge per quintal is INR 100.
Around 60-70% of maize has already been delivered by farmers to the mandis. Based on current patterns, corn deliveries from Uttar Pradesh are expected to reduce considerably in the coming weeks. Warehouse suppliers have struggled to restock maize as needed, resulting in mostly empty warehouses.
In Maharashtra, maize prices remained stable due to adequate supply meeting existing demand. Several buyers have transitioned to alternative goods. Prices in Jalgaon remained stable at INR 2590-2600 per quintal, with a potential decrease of INR 20-40 per quintal expected in the near future.
The government is reportedly asking buyers for a 20% upfront payment for maize imports, with an official tender to follow. This process is anticipated to be time-consuming, and if utilized, the delivery of imported maize may coincide with the new Indian Kharif corn date, leading to a lack of interest in government-imported maize.
By July 15, 2024, the total area of maize cultivation reached 5.9 million hectares, an increase of around 1.5 million hectares compared to the previous year. Market players anticipate an 8-10% increase in maize cultivation in traditionally soybean-growing regions such as MP and Maharashtra, driven by rising mandi expenses and increased demand from poultry and biofuel companies.
Considering the current circumstances, the ongoing price increase might temporarily halt as poultry consumers switch to more competitive crops and the TRQ import scenario creates a negative market sentiment. However, given the limited availability of resources, a significant decline remains unlikely.
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