Ahmedabad, 5 August (CommoditiesControl: Maize prices are steadily increasing in key cities across India due to rising domestic demand and decreasing supply. The situation is further aggravated by the absence of new arrivals, which are expected in Karnataka and Telangana only after 40–60 days.
Bihar's maize crop is projected to yield approximately 3.6-4 million tons this year. Around 22–25 lakh tons have been transported out of Bihar using vehicles and rakes. Local traders estimate that processors hold about 0.7 million tons, stockists about 0.3–0.4 million tons, and cultivators retain 0.2–0.3 million tons.
Recently, prices of maize in Bihar, particularly in Gulab Bagh, have risen, indicating a positive market trend. The current price range is INR 24700–25500 per ton, with October prices in Gulab Bagh at INR 26000 per ton.
Dhirendra Singh Tudu, president of Bihar Kisan Manch, criticized the government's attempts to control maize prices. He emphasized that maize farmers are frustrated with these policies, and the organization will oppose any government attempts to import maize, fearing it would harm Indian farmers. Protests are planned across the state. The lack of government intervention is supporting maize prices.
In the latest railway conference, it was noted that approximately 700 maize rakes were transported from the East Zone, a significant increase from previous years' 530 rakes. This higher removal rate has led to a deteriorating stock situation in Bihar.
Despite low stockpiles among bulk stockists in Bihar, prices are expected to rise in the near term. Gulab Bagh arrivals have dropped to about 1000 tons, and most supplies have already left Bihar, leaving farmers with weak holdings.
West Bengal consumers are becoming more active in maize purchases. A poultry buyer in Kolkata quoted a purchase price of INR 27500 per ton, a 500-INR increase from the previous session, indicating rising demand in the poultry industry.
East India buyers are increasingly active, particularly for high-quality maize, with no new arrivals nationwide. This trend is expected to drive up maize prices in Bihar due to the weak supply position.
Eastern zone goods are priced at approximately INR 400 per ton, while Maharashtra/Karnataka/MP maize spot prices are INR 23000–24000 per ton, with western zone maize being shipped to Eastern India at INR 27000–28000 per ton.
In Uttar Pradesh, producers possess only 20–30% of maize stocks. The state's crop yield is estimated at 1.4–1.5 million tons, down from last year's 1.7 million tons. Maize deliveries in Kasganj mandi have dropped to about 500 tons per day, a significant decrease from peak levels.
Punjab and Haryana have seen almost no maize arrivals, with Haryana poultry purchasers buying at INR 25000 per ton. Higher freight rates from Bihar to Punjab and Haryana have led to supplies being secured from UP.
In Sangli, Maharashtra, buyer inquiries have increased, with prices now trading at INR 29000 per ton, a rise of INR 500 per ton. Local warehousing stock in Sangli has significantly declined, with major stockists holding less than 3000 tons.
Rake purchasers from Uttar Pradesh are buying maize at INR 23500 per ton, mainly for Maharashtra, MP, Gujarat, Rajasthan, and Haryana. Ethanol customers are not seeking purchases above INR 25000 per ton, while poultry buyers are active but cautious due to the Sravan season.
Tamil Nadu customers are currently purchasing maize at INR 2825-2850 per quintal. The price of imported maize is INR 2800-2825 per quintal, and Karnataka maize remains at INR 2750-2800 per quintal. In AP and Telangana, maize prices are INR 2600-2650 per quintal.
A significant portion of the new crop, expected around mid-September in Karnataka's Koppal region, is likely to be consumed locally. Increased local consumer demand, especially from ethanol producers in Bagalkot and Bijapur, suggests limited impact on maize prices from new arrivals.
As of August 2nd, 8.2 million hectares of maize were sown, an increase of 0.7 million hectares from the previous year. Maize acreage is expected to rise by 8-10% annually in regions typically associated with soybean and cotton cultivation due to higher parasite incidence in cotton. Farmers are shifting to maize due to strong demand from ethanol and poultry producers.
Overall, maize market sentiments are robust. Prices are expected to remain supportive in the short to medium term, driven by poultry industry demand. However, a significant price increase is unlikely as buyers anticipate new kharif arrivals next month.
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