Better demand and price conditions are likely to increase maize area and production

05-Jul-2025 12:51 PM

New Delhi. In view of strong demand and attractive prices in the domestic sector, the maize sowing area is expected to increase by 8–10 percent during the current Kharif season compared to last year.

If the weather and rainfall conditions remain favourable, the production of this important coarse grain could reach a new record. In many areas, farmers are expected to shift acreage from soybean, pulses, and some minor crops to maize. Initial signs of this trend have already begun to appear. Over recent years, the average yield rate of maize has also shown consistent improvement.

In central and central-southern parts of the country, farmers’ preference for maize cultivation is rising rapidly, and crop management practices are also improving.

Given the projected increase in both sowing area and yield, domestic maize production during the current Kharif season could rise by about 15 percent compared to last year. In 2024, around 185–190 lakh tonnes of maize was produced, while this year the figure could rise by 25–30 lakh tonnes.

If monsoon rains continue through September, it will create favourable conditions for maize cultivation in the Rabi season as well, making it easier for farmers to expand the sowing area.

Adequate water levels in dams and reservoirs will support irrigation needs. During the Rabi season, the maize sowing area is expected to increase by about 5 percent, with total production projected to exceed 100 lakh tonnes.

In addition to favourable weather and increased output, 15–20 lakh tonnes of carryover stock from the previous year will also be available.

This should be sufficient to meet domestic demand. Some optimistic market watchers suggest that an exportable surplus of 20–25 lakh tonnes may be available, but this will depend on whether exporters can remain competitive against domestic buyers from the animal feed, poultry feed, starch, and ethanol industries. Export viability will also hinge on global market prices.

The minimum support price (MSP) of maize has been raised by Rs 175—from Rs 2225 to Rs 2400 per quintal. If the domestic market price stays between Rs 21,500 and Rs 24,500 per tonne, industries such as ethanol may see strong demand.

However, if prices rise to around Rs 26,000 per tonne, it may become challenging for domestic industries and exporters. In that case, the government may be compelled to revise the procurement price of ethanol made from grains.