New Delhi, September 5 (Commoditiescontrol): Maize prices remained steady today as the market adopts a wait-and-watch approach, with expectations of new kharif arrivals in the third week of September influencing trading activity.
In Bihar, maize traded within the range of INR 2,500 to INR 2,550 per quintal, while prices in Uttar Pradesh also held steady at INR 2,500 per quintal. Rake delivery prices for Bihar maize destined for Tamil Nadu remained unchanged at INR 2,900 per quintal.
In Karnataka, prices steadied between INR 2,750 and INR 2,800 per quintal in consumption markets. Imported maize in Tuticorin traded at INR 2,850 per quintal. Pune and Sangli markets saw prices stabilize at INR 2,900 to INR 2,950 per quintal, while Jalgaon market prices remained at INR 2,800 per quintal.
The market is keenly anticipating a significant increase in ethanol demand for the upcoming marketing season. According to government estimates, India will require more than 10 billion liters of ethanol to meet its 20% blending target, double the volume produced in the marketing year ending October 2023. This year, approximately 3.5 million tons of corn has been utilized to produce 1.35 billion liters of ethanol, a fourfold increase from the previous year.
Sugarcane is expected to contribute more in the next season, but its maximum contribution will be capped at 5 billion liters due to the government's focus on meeting domestic sugar consumption needs. Consequently, an increase in corn-based ethanol production to 3 billion liters will necessitate nearly 8 million tons of corn, potentially requiring substantial imports.
The rising demand for ethanol in India has led to a price increase for corn in Myanmar, with prices climbing to around USD 300 per MT (FOB) from USD 270, motivating farmers to increase planting. India has imported approximately 775,000 tons of maize by August 2024.
Given the projected ethanol demand, any significant decline in kharif maize prices is unlikely, even with bumper arrivals. Warehouse prices currently quoted around INR 2,800 to INR 2,850 may not fall below INR 2,300 to INR 2,400 despite peak arrivals. It remains too early to determine the full extent of maize price movements, as traders and processors are expected to remain active in importing maize from Ukraine and Burma this year. India has also permitted the import of 500,000 tons of maize at a concessional duty of 15% under the TRQ scheme.
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