The Hindu Business Line : Maize prices rule firm

Coimbatore, Dec. 30 Maize prices remained firm at Rs 6,850 per tonne this week. The average price of the commodity for the month at Rs 6,800 a tonne was nearly the same as last year’s at Rs 6,779 (December 2006).

This despite production estimates for the rabi crop (still in preliminary stage) indicating a yield of 2.7-3 million tonnes, as area under maize is reported to be up from 7.41 lakh hectares to 9.78 lakh hectares. The higher crop area owes to firm prices trend for maize.

The spot market prices of maize in South too remained firm with Nizamabad and Davanagere markets quoting at Rs 6,800-6,900 per tonne. The commodity is quoted higher at Rs 8,300 in Ratlam (Madhya Pradesh) and Nimbaheda (Rajasthan), whereas the prices at Karimnagar (Andhra) prevailed at around Rs 7,000.

Maize futures market prices (for January-April 2008 deliveries) are being quoted higher at Rs 7,450-7,950 per tonne, though the new crop is expected by March next, according to the US Grains Council’s India market reports.

Corn futures prices on the commodity board of trade have this week moved up to $177.94 and $182.35 per tonne for the March and May 2008 deliveries, up 2 per cent over last week’s price close.

The report said the prices are likely to stay firm in view of the persistently rising demand for ethanol.