News Capsule: Pressure on maize prices, rates below MSP
04-Nov-2025 04:45 PM
News Capsule: Pressure on maize prices, rates below MSP
★ Maize demand in the country has softened as ethanol producers are now using alternative feedstocks like rice and sugarcane. The government has allocated 5.2 million tonnes of rice to ethanol producers for 2025-26. In addition, the increased availability of DDGS has reduced maize demand from the poultry sector.
★ Due to the expansion in maize cultivation area, production is expected to be higher than last year despite heavy rainfall. Despite crop damage, maize arrivals have increased, which could continue to put pressure on prices.
★ Market prices are below the MSP, prompting the Telangana government to decide to procure around 8 lakh tonnes of maize out of the estimated 11.50 lakh tonnes of production. The government is purchasing maize at ₹2,400 per quintal. So far, 20,584 quintals have been procured at a cost of approximately ₹50 crore, with procurement expected to be completed by December 15.
★ Maize production has increased over the past three years, and gradually, as alternative options for ethanol emerge, demand for maize has declined. In its previous reports, IGrain India has periodically reported profit-booking sales in maize, which have proven accurate.