Maize prices soften due to increased supply of new stock
05-Nov-2025 10:39 AM
Hyderabad. Expectations of record production, rapidly increasing arrivals of new stock, and weak demand from the ethanol industry have caused maize prices to fall below the Minimum Support Price (MSP) in major markets across the country. Maize's use in poultry feed production is also declining.
It is noteworthy that the Central Government has increased the MSP of maize by Rs. 175 from Rs. 2225 per quintal for the 2024-25 season to Rs. 2400 per quintal for the 2025-26 season.
However, depending on moisture content and quality, its price in wholesale markets in various producing states currently ranges between Rs. 1300 and Rs. 2100 per quintal. This is the model price, and most of the trading in the markets is done at this price.
Concerned by the falling wholesale market prices, producers are now strongly demanding the government to resume maize procurement at the MSP, as they are forced to sell their produce at throwaway prices.
In light of the difficulties faced by farmers, the Telangana government has begun purchasing maize at the MSP and has planned to procure approximately 800,000 tons.
It is noteworthy that farmers, anticipating better income, showed tremendous enthusiasm for maize cultivation during the Kharif season, leading to a nationally high sown area of 94.90 lakh hectares, a jump of 10.60 lakh hectares from last year's 84.30 lakh hectares.
Although crop damage was reported in some areas due to excessive rainfall and flooding, production of this important coarse grain is expected to reach new record levels during the current year.
Demand for maize in the ethanol manufacturing industry has weakened as it currently finds easy alternatives to rice and sugarcane.
According to Rahul Chauhan, Director of iGrain India, the central government has allocated a quota of 52 lakh tons of rice to ethanol manufacturers for the 2025-26 season.
Meanwhile, the increased supply and availability of Distillers' Dried Grains with Solubles (DDGS) has impacted the demand for maize in the poultry industry. DDGS is produced during the production of grain-based ethanol.
Rahul Chauhan says that although excessive and untimely rainfall damaged Kharif crops in many areas of the country, there is still a strong possibility that maize production will exceed last year's.