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Maize Prices Remain Rangebound Amid Steady Supply and Consistent Demand

13 Jan 2025 6:25 pm
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Mumbai, January 13 (Commodities Control): Maize prices traded in a rangebound manner today as current supply levels were sufficient to meet existing demand across various regions. Prices showed little fluctuation, with steady arrivals from both domestic markets and recent imports.

In Karnataka, maize prices remained consistent at INR 2,420–2,425 per quintal. In Jalgaon, the price range held steady between INR 2,350 and INR 2,420 per quintal, while Maharashtra's Sangli reported prices between INR 2,525 and INR 2,540 per quintal. Madhya Pradesh saw consistent pricing at INR 2,380–2,420 per quintal, and Bihar’s prices stayed firm at INR 2,700–2,720 per quintal. In Andhra Pradesh, the price of maize remained unchanged at INR 2,550 per quintal.

In Tamil Nadu, the arrival of the new harvest is pushing prices lower, with the current rate now at INR 2,500 per quintal.

The ongoing rabi sowing season has covered 2.2 million hectares, an 8% increase compared to last year, indicating a bumper crop. Bihar, in particular, has seen a significant rise in sowing, with over 800,000 hectares under cultivation, up 10% year-on-year. While this bodes well for the potential output, it may put some downward pressure on prices in the coming months. However, continued demand from major maize-consuming centers is expected to help support prices, preventing a major decline.

Sellers are reportedly hesitant to sell at the current rates, following some price drops. Despite the recent arrival of Ukrainian maize shipments, which were purchased by starch-making companies, they have continued to source maize from the open market, particularly in Maharashtra, where recent transactions took place at INR 2,375–2,400 per quintal over the weekend.

Global maize prices, particularly from Ukraine, have been volatile. The FOB price for Ukrainian maize is currently quoted at USD 210–215 per ton, which translates to around USD 260 per ton on a CNF basis for India. Consequently, factory gate prices in Gujarat are estimated at approximately INR 25,000 per ton, which is lower than domestic prices. This price disparity may discourage imports and support domestic maize prices in the short term.

Additionally, the Food Corporation of India (FCI) recently sold rice to ethanol producers at INR 2,800 per quintal, exerting some pressure on maize prices. However, maize prices remain competitive, as they are still below the cost of FCI rice (when factoring in goods and other charges, which make rice cost around INR 2,900 per quintal). Therefore, any significant impact on maize demand from ethanol buyers is unlikely.

Maize continues to be a more affordable feed option compared to Bajra and broken rice, which are trading at INR 27–29 per kg in southern markets. As a result, poultry feed demand remains stable across India.

With kharif arrivals now comprising only 10–20% of their peak, there are no major arrivals expected until March or April, when the new rabi crop is expected to come in from Eastern India, Maharashtra, Telangana, and Karnataka. Given this, maize prices are expected to remain rangebound for the next week, with potential for a rise as the supply tightens with the arrival of the new rabi crop.



(By Commoditiescontrol Bureau; +91 98201 3018)


       
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