Maize prices have declined below ₹2,000 per quintal to hover around or below the minimum support price (MSP) of ₹1,962 in several markets of key producing States such as Karnataka, Maharashtra and Madhya Pradesh in view of high moisture in the crop that has begun arriving.

Trade sources said arrivals are yet to pick up as the prolonged rainy season and cloudy weather are impacting the harvesting and drying process of maize across the country.

As per data from the portal Agmarknet, a unit of the Ministry of Agriculture, in terminal markets such as Khargone, Dewas and Vidisha in Madhya Pradesh the modal price (the rate at which most trades take place) has dropped below the MSP and is hovering around ₹1,300-1,400l. In Davangere, Gadag and Bellary in Karnataka, maize prices are hovering just below the MSP at around ₹1,950.

Ex-warehouse price dips

“Even the ex-warehouse prices of maize have come down by about ₹300 per quintal to around ₹2,200 levels in Telangana and Madhya Pradesh. Over the next fortnight, we expect the ex-warehouse prices to drop further to ₹2,000-2,100 levels. During the peak arrivals, we expect the ex-warehouse prices of maize to come down to ₹1,950-2,000 levels,” Indrajit Paul, Senior Manager, Commodity Research at Origo Commodities India Pvt Ltd. Normally, the warehouse prices are ₹100-150 per quintal higher than the mandi prices.

“Poultry feed makers have been buying on a need basis during September and October as they are anticipating prices to come down further. They are getting the maize from Bihar at ₹2,400-2,450 levels. In the new produce from Karnataka, the moisture is too high and people are waiting for the prices to drop further. We expect the domestic demand for maize to go up by 4-5 per cent this year,” Paul said. Further, he said export demand may support prices by November.

Crop estimate

As per the Government’s first advance estimates, maize production is estimated at 23.10 million tonnes (mt) against 22.63 mt as per the fourth advance estimates of the previous season.

“Extended rains may damage the crop in the final stages like last year. The standing crop is yet to be harvested and dried. Only after Diwali, arrivals will pick up and prices may come down further, prompting people to store the produce,” said KS Ashok Kumar of MAA Integrators.

As the moisture content in still high in the produce that is coming to the market, feed makers and poultry players are yet to start purchases. Buying will start by mid-November, he said.

The production and the demand for poultry products has been on the rise as post-Covid there is a considerable increase in protein intake, he said.

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