Low maize prices offer India a chance to re-enter the export market
04-Nov-2025 01:08 PM
Low maize prices offer India a chance to re-enter the export market
★ India’s kharif maize production is expected to touch record levels for the second consecutive year, even as domestic prices remain below the Minimum Support Price (MSP). Despite this, farmers are unlikely to shift to other crops during the rabi or next kharif season, as maize continues to offer better returns and lower cultivation costs compared to other crops.
★ Currently, maize prices are in the range of ₹1,800–2,000 per quintal, much lower than the government’s MSP of ₹2,400 per quintal. Prices have fallen due to higher moisture content in the early crop arrivals. Experts expect prices to rise to around ₹2,100 per quintal by June–July.
★ Apart from Maharashtra, Bihar, Karnataka, and Andhra Pradesh, maize cultivation has rapidly expanded in Madhya Pradesh, Rajasthan, and Uttar Pradesh, leading to a sharp rise in production. In the 2024–25 crop year, maize acreage grew by 7% to 12 million hectares, pushing production to a record 42 million tonnes. For 2025–26, output is expected to reach around 47 million tonnes.
★ Demand from the ethanol sector has slightly declined as the government has allowed rice from the Food Corporation of India (FCI) to be used for ethanol production, which may reduce maize demand by 1–2.5 million tonnes.
★ Falling domestic prices and surplus output, however, present India with an opportunity to once again become a maize-exporting country. India is expected to export nearly 1 million tonnes of maize in 2025–26.
★ Currently, Indian maize is priced at around $220 per tonne in the global market, compared to $200 per tonne for US maize. Since US maize is mostly genetically modified (GM), India’s non-GM maize offers a competitive advantage in international markets.