Maize Producers Worried Over Falling Market Prices

06-Nov-2025 05:00 PM

New Delhi. Due to increased supply and availability of new produce in important wholesale markets of major producing states, and weak demand from the poultry and ethanol industries, the price of maize has fallen well below the Minimum Support Price (MSP).

Farmers are deeply concerned and distressed, demanding that the government resume procurement. The Telangana government has initiated this initiative and has begun purchasing maize from farmers at the minimum support price, announcing the purchase of 8 lakh tonnes.

The central government has increased the minimum support price for maize by Rs. 175 from Rs. 2225 per quintal for the 2024-25 season to Rs. 2400 per quintal for the 2025-26 season, while the model price (the highest traded price) for this important coarse grain is hovering between Rs. 1600 and Rs. 2100 per quintal in various markets. The price of high-moisture and low-quality maize has fallen to as low as Rs. 1300 per quintal.

Nationally, the area under maize cultivation in the Kharif season jumped to an all-time high, reaching nearly 1.05 million hectares from last year.

This was expected to lead to a strong increase in production, but the prospect of record production increases has been diminished due to surplus rainfall and severe flooding in some areas. However, overall production may still be better than last year.

Farmers increased the area under maize cultivation this year in anticipation of better income, but the extremely low prices in wholesale markets are disappointing them.

The central government, through its agencies, is not giving any clear indication of intervening in the market to procure maize. Farmers, especially small producers, are being forced to sell their produce at throwaway prices.

The supply and availability of maize is expected to increase even more rapidly in the coming period. Due to weak market prices, the area under maize cultivation in the Rabi season has fallen slightly behind last year.