The Hindu Business Line : Maize prices firm amidst delivery hold-ups

There has been a surge in maize prices last week. The market yard prices went up by three per cent at Rs 6,600-6,650 per tonne over the previous week’s Rs 6,400-6,500 per tonne. According to the US Grains Market India reports, the possible reasons for the increase in the maize prices are export consolidation and rains in parts of Tamil Nadu and Andhra Pradesh which held up deliveries.

The average market yard price during October was being quoted at Rs 6,549 per tonne which is some 8.7 per cent higher than the corresponding period of last year.

Other grains

The report said the price of bajra (pearl millet) quoted lower by 4.1 per cent at Rs 6,166 per tonne as compared to the previous week and this year price is lower than the last year prices by 6.7 per cent. Sorghum (jowar) prices too fell by 1.7 per cent to Rs 9,535 per tonne compared to the previous week but it ruled higher by 21.2 per cent compared to last year.

The Indian Government has estimated the total maize production for 2007 at 16.07 million tonnes against 14.98 mt for 2006.

Wheat prices

The India report further said that with the minimum support price for the wheat raised to Rs 10,000 per tonne, the land under maize in Bihar, Uttar Pradesh and Madhya Pradesh may go down. The high wheat prices in local market will force many farmers to consume maize as food thus reducing the market surplus. The combined demand of maize by poultry, starch, livestock, brewery besides export demand is estimated at 15.93 mt.

Any reduction in rabi (Feburary-March 2008) maize harvest, increase in human consumption and higher exports could trigger an increase in maize prices in India.