Increased domestic production boosts maize export prospects

04-Nov-2025 08:05 PM

Mumbai. Industry and trade analysts say that for the second consecutive year, record maize production is expected in the Kharif season, and its domestic market price has also fallen to around or below the Minimum Support Price (MSP).

However, despite this, a significant reduction in acreage is unlikely during the current Rabi season or the next Kharif season, as farmers will continue to receive better returns from maize cultivation compared to other crops. Maize cultivation has low input costs.

Farmers lack attractive alternatives that ensure high incomes while minimizing the risk of losses. Because maize meets the standards of the crop, farmers' enthusiasm and interest in its cultivation is expected to continue.

The softening of domestic maize prices could provide India with a good opportunity to enter the global export market.

According to a leading analyst, due to strong production and weak demand, the domestic market price of maize is likely to remain somewhat subdued during the 2025-26 season.

Demand for ethanol in the industry has slowed somewhat. Supply and availability in markets remain comfortable. The Kharif crop will be followed by the Rabi season. Consequently, a sharp price increase for this important coarse grain is unlikely until June-July next year. Sowing of Rabi season maize has already begun.

Currently, maize prices have fallen to between ₹1,600 and ₹1,900 per quintal, well below the government's support price.

The government has increased the minimum support price (MSP) for maize by ₹175 from ₹2,225 per quintal for the 2024-25 season to ₹2,400 per quintal for the 2025-26 season.

Currently, the moisture content of maize arriving in markets is above the approved limit, so traders are attempting to purchase it at lower prices. Prices are expected to improve slightly as dry stock arrives in the future.