Despite the possibility of better production, the price of maize is expected to remain high.
14-Sep-2024 01:55 PM
Mumbai. Although there has been a good increase in the sowing of maize during the current Kharif season as compared to last year and its area has jumped from 82.86 lakh hectares to 87.27 lakh hectares,
due to which there are chances of better production, but despite this, the environment of bullishness in prices may remain.
The central government has also increased the minimum support price of maize by 6.5 percent to Rs 2225 per quintal.
According to official data, domestic production of maize fell from 380.90 lakh tonnes in the 2022-23 season to 356.70 lakh tonnes in the 2023-24 season, while its use in ethanol production jumped from 8 lakh tonnes to 35 lakh tonnes.
The use of maize in ethanol production is likely to increase even faster in the 2024-25 marketing season, due to which its demand and supply equation may remain complex.
Traditionally, 60% of the maize produced in the country has been used in animal feed and poultry feed industry. 60-70 lakh tonnes of maize is also consumed in starch production and then used for human food purposes.
Maize exports are being badly affected due to increase in domestic consumption and high market prices.
A few years ago, its exports had increased to 35-40 lakh tonnes, which has now come down to less than 5 lakh tonnes. There is very little possibility of improvement in export performance in the future.
For ethanol production, the manufacturers themselves are paying special attention to the purchase of maize, while the government is also preparing to buy it at the minimum support price.
As a result, there will continue to be intense competition among various consuming industries for the purchase of maize in the domestic market and accordingly efforts can be made to buy as much of it as possible at the highest price.
If the government allows duty-free import of maize of both GM and non-GM categories from abroad, then its prices may calm down to some extent.