India May Continue Maize Imports as Rabi Crop Faces Weather Risk

27-Feb-2025 10:41 AM

India May Continue Maize Imports as Rabi Crop Faces Weather Risk
★ Despite increased kharif maize production and the government's decision to allow rice and sugarcane for ethanol production, India may continue importing maize due to weather risks affecting the rabi crop.
★ Rabi maize production in Bihar and Uttar Pradesh is estimated at 9.8-10 million tonnes, below the 12 million tonnes target due to moisture stress.
★ Higher sowing area (2.37 million hectares, +8.8%) may not fully offset the impact of rising temperatures.
★ Domestic maize prices have fallen to Rs. 2,360 per 100 kg, still above the MSP of Rs. 2,225.
★ FCI’s rice sales at Rs. 2,250/quintal and relaxation on sugarcane ethanol use have reduced maize demand.
★ Ethanol policy changes have affected farmers, which may impact future maize cultivation.
★ Maize prices may rise by July, prompting the government to reconsider imports.