Prices expected to remain strong due to rising domestic demand for maize
03-Jun-2024 06:22 PM
New Delhi. The Union Agriculture Ministry has set a target of producing 388.50 lakh tonnes of maize in the 2024-25 season, which seems necessary in view of the rapidly growing domestic demand and consumption. But considering the production status of the last two years, additional efforts will be required to achieve this huge target.
The price of maize has risen above the minimum support price (MSP) and its price reaching consumer units is seen to be around Rs 2400 per quintal.
Due to the high domestic market price, the export offer price of maize has become non-competitive and hence its demand in importing countries has decreased significantly.
The high price can become a cause of concern and trouble for the government as ethanol manufacturers will not get much opportunity to buy it from farmers at the minimum support price for supply.
Now once again soon the minimum support price of maize is going to be announced for the 2024-25 season. Due to this, the market price may become a little higher and faster.
In the current marketing season of 2023-24, the government has estimated the production of maize to be 227.20 lakh tonnes during the Kharif season and 97.50 lakh tonnes during the Rabi season, whereas in 2022-23 its production was estimated to be 236.70 lakh tonnes in the Kharif season, 116.90 lakh tonnes in the Rabi season and 27 lakh tonnes in the Zaid season.
In this way, the total production increased to a new record level of 380.90 lakh tonnes. This time the production estimate for the Zaid season has not been revealed yet.
During 2023-24, about 8 lakh tonnes of maize was used in the ethanol sector, whereas during the current year it is estimated to increase to 34 lakh tonnes and jump to 100 lakh tonnes by 2027-28.
If an attempt is made to meet this huge demand from indigenous sources, then the problem will increase for other consuming sectors.
Last year, 160 lakh tonne of maize was used in the poultry sector whereas in the current year it may increase by another 10 lakh tonne.