Despite the possibility of increase in production, there is less possibility of softening of maize prices.

08-Aug-2024 10:29 AM

Hyderabad. Data from the Union Agriculture Ministry shows that in the current Kharif season, till August 2, the total production area of ​​maize at the national level has increased to 82.25 lakh hectares,

which is about 7.70 lakh hectares or 10 percent more than the sowing area of ​​74.56 lakh hectares in the same period last year and 7 percent more than the five-year average area.

The weather and rainfall conditions in the major producing areas have remained favorable so far, due to which its average yield rate and production are expected to increase well.

Usually, there is a possibility of pressure on prices due to better production, but this time it is expected to happen in the case of maize.

Usually, there is a possibility of pressure on prices due to better production, but this time it seems difficult for this to happen in the case of maize.

According to trade analysts, the previous stock of maize has remained very low while its industrial demand and consumption is increasing rapidly. In view of this, when the new crop starts arriving, there can be a strong demand for it in animal feed and poultry feed industry as well as starch production.

Apart from this, there will also be the challenge of strong demand from the ethanol production industry.

Ethanol manufacturers themselves will make every effort to buy maize at their own level, while government agencies can also try to buy it for this. Exporters will also want to stock up maize.

The government has increased the minimum support price of maize by 6.5 percent from last year to Rs 2225 per quintal this time, while its market price is running high due to off-season supply and strong demand.

Everyone's eyes are on the maize market, so despite better production, there is very little chance of its price decreasing.